Monday 3 November 2008

Buy Merck, target of Rs 400: LKP Shares

LKP Shares has recommended a buy rating on Merck with an one-year target of Rs 400 in its November 3, 2008 research report. "Merck the 51% subsidiary of the German drug company derives 80% of its annual revenues from ethical formulations like vitamins and cardiologicals, consumer care products like ORS, Nasal drops and Health Supplements. Bulk Actives like Vitamin E, Oxynex and Guaiazulene account for 20% of its revenues. With the company increasing capacities of Oxynex by seven times the next fiscal should see significant export volumes. Merck trading at book value has a dividend yield of more than 7% and at 7xCY’08E earnings can be accumulated by investors with a one-year price target of Rs 400. BUY," says LKP Shares' research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 07:10

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.