Pfizer has declared an encouraging net profit growth of 37% for 2QFY02 as against 19% growth in sales. Operating margins of the company have shot up to 9.6%.The performance of the company has been better than expected. The third quarter performance is usually the best as sales of cold and cough preparations pick up during this quarter. An increase in operating margins in the second quarter has therefore, come as a pleasant surprise.
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The better than expected performance seems to be backed by fast growth sales coming from new products, especially Magnex and Hepashield as well as older products maintaining their growth rates. Hepashield and Magnex (hospital antibiotic) launched this year have been ranked as number one and number two highest selling brands respectively.
At the current market price of Rs 458, the stock is trading at a P/e of 21 times its annualised earnings of 2QFY02. The stock has been battered in the last six months due to concerns over the parent's 100% subsidiary.
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