Anand Rathi has given Buy recommendation for Pfizer India with a target price of Rs. 5655 in its research report issued on Feb 08, 2021
Anand Rathi’s research report on Pfizer India
On its better hospitals and vaccine performances, Pfizer’s Q3 FY21 sales grew 10.3% y/y to Rs.5.9bn. Its gross margin expanded 149bps y/y to 64.2%, while the EBITDA margin expanded 836bps y/y to 33.2% on account of lower promotional costs. Lower other income and a higher tax rate reduced adj. PAT growth to 19.8% (Rs.1.4bn). We expect sales growth of key brands (Gelusil, Prevenar-13, Becosules, Magnex, Dolonex and Meronem) to accelerate in FY22. The stock trades at attractive valuations of 36x/31.7x FY22e/FY23e earnings.
We upgrade our rating to a Buy with a target of Rs.5,655.