Karvy Stock Broking has upgraded its rating on Aventis Pharma to outperformer with a price target of Rs 1145 in its April 8, 2009 research report.
“The company’s top 6 brands grew by 21.6 %. Amaryl, Clexane, Targocid and Allegra rank no 1 brand in their respective segments. Net revenues for the quarter were up by 5.4% to Rs 2287 million. The main de-growth has been due to loss of Rabipur revenues. Operating margins are expected to fall from 18.7 % to 17.9 %. The main reason for the fall in margins has been due to decline in high margin Rabipur revenues. Profits for the quarter are expected to decline from Rs 345 million to Rs 320 million for the quarter. We introduce CY 2010 estimates and roll over our price target to CY 2010 basis. We rate the core business of the company at 12x CY 2010 at Rs 828 and add Rs 315 cash per share to the company’s core price and arrive at a price target of Rs 1145. We upgrade the stock to Outperformer,” says Karvy Stock Broking’s research report.
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