Pfizer: Margins on the rise - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Pfizer: Margins on the rise

Mar 19, 2002

Apparently, on the back of strong marketing push, Pfizer has logged a 6.6% topline growth in 1QFY03. The growth has been marginally better than our expectations. The highlight of the results was a sharp improvement in operating margins compared to the last year by more than 570 basis points.

(Rs m) 1QFY02 1QFY03* % Change
Sales 749 798 6.6%
Other Income 127 121 -4.7%
Expenditure 713 713 0.1%
Operating Profit (EBDIT) 36 85 133.5%
Operating Profit Margin (%) 4.9% 10.6%
Interest 1 1 -61.5%
Depreciation 16 17 6.8%
Profit before Tax 146 188 29.0%
Tax 58.3 67.9 16.5%
Profit after Tax/(Loss) 88 120 37.3%
Net profit margin (%) 11.7% 15.1%  
No. of Shares (eoy) (m) 23.4 23.4  
Diluted Earnings per share 15.0 20.6  
P/E (at current price) 21.7  
*- 1QFY03- is for the quarter ending Feb'02.

The boost in sales and operating margins seem to be on the back two main reasons. One, the company's 'Corex' range of cough preparations which contribute around 30% of the company’s sales are logging 8%-9% growth rates. Further, inspite of strong competition new products like Magnex and Hepashield are selling at a premium.

At the current market price of Rs 446, the stock is trading at 22x FY03 expected earnings. The company is expected to be a major beneficiary of the recent DPCO dilution. Becosules, Pfizer's top selling brand is expected to come out of price control. Becosules enjoys a market share of around 25% in the Vitamin B market with a strong brand recall and one can expect a ramp up in margins if the product actually comes out of price control.


Equitymaster requests your view! Post a comment on "Pfizer: Margins on the rise". Click here!

  

More Views on News

PFIZER Announces Quarterly Results (1QFY21); Net Profit Up 10.3% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, PFIZER has posted a net profit of Rs 1 bn (up 10.3% YoY). Sales on the other hand came in at Rs 5 bn (down 5.4% YoY). Read on for a complete analysis of PFIZER's quarterly results.

PFIZER Announces Quarterly Results (3QFY20); Net Profit Up 5.4% (Quarterly Result Update)

Feb 19, 2020 | Updated on Feb 19, 2020

For the quarter ended December 2019, PFIZER has posted a net profit of Rs 1 bn (up 5.4% YoY). Sales on the other hand came in at Rs 5 bn (up 4.7% YoY). Read on for a complete analysis of PFIZER's quarterly results.

PFIZER 2017-18 Annual Report Analysis (Annual Result Update)

Jan 1, 2019 | Updated on Jan 1, 2019

Here's an analysis of the annual report of PFIZER for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of PFIZER. Also includes updates on the valuation of PFIZER.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

PFIZER SHARE PRICE


Sep 18, 2020 01:09 PM

TRACK PFIZER

COMPARE PFIZER WITH

MARKET STATS