Indoco Remedies is into the Active Pharmaceutical Ingredient (API) and formulations. They have six manufacturing plants. They have brand product portfolio of 135 products, of which 14 products are in top three brands category. They have presence in 35 countries, of which many regulated markets are also included.
If you go by the financial performance for the first nine months, the company has posted an earnings per share (EPS) of Rs 33 on a top-line of about close Rs 370 crore. And this performance was achieved by the company in whole of FY10. So, already the company is on a path of showing a growth of about 35-40% in FY11. They should be able to post an EPS of close to about Rs 45 per share for FY11, which could rise to about Rs 52-54 for FY12.
The company has a very small debt of about Rs 40-45 crore which is largely used by the company for working capital. So, if I take an analysis, it can be called as a debt free company. It is available at a PE multiple of close to about 10 or 11 on the historic earning. So, amongst the midcap pharma, this looks quite an interesting stock. I am expecting a price of may be about Rs 600 in next eight-ten months time
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