Wednesday 12 November 2008

Accumulate Wockhardt: ULJK Securities

ULJK Securities has recommended an accumulate rating on Wockhardt in its November 8, 2008 research report. "Revenue increased 25% YoY. Operating margin up 23% YoY while Net profit declined by 43% on account of currency loss. Interest cost likely to go up sharply in CY09, given the redemption of USD 110 million FCCB in CY09 and ECB of USD 250 million repayable from CY08."

"The US market is expected to demonstrate a robust growth in future years, increasing contribution to 35% by CY12 vis-à-vis current 25%. We believe that Wockhardt will manage to achieve its target of becoming a USD 1 billion by CY09. We expect Wockhardts RoE to remain in a range of 27-30% till CY10 and recommend ‘Accumulate’ on the stock," says ULJK Securities' research report.

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Source: Moneycontrol

Posted by Harsh at 09:21

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