ICICIdirect maintained 'Hold' on Unichem Laboratories with target price of Rs 198 against current market price (CMP) of Rs 187 in its report.
Commenting on the rationale, the stock broker said, ''The Q1 performance reflects Unichem’s susceptibility to margin pressure if domestic formulation growth fumbles. This scenario is likely to continue for the next few quarters as the restructuring exercise in domestic formulations is still going on.''
''Note that its flagship product group in the domestic formulations - Losar (Losartan-anti-hypertensive), which constitutes ~20% of domestic formulations, is under NLEM. On the exports front, the company still remains a marginal player,'' it further said.
''With prospects of the CRAMs business uncertain, the only tangible traction will
be from global formulation exports, especially from US launches,'' it added.
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