CMP Rs519, Target Rs580, Upside 11.8%
± In line results; Taro boosts revenue
± Continuing robust growth of 18% in domestic market after adjusting for third party sales; as expected
± US growth remains buoyant though sales not comparable yoy as Q1 FY11 had Eloxatin sales
± ROW Formulation growth picking up
± OPM
jumps 315bps qoq on account of benefits of operating leverage and cost
rationalization along with decrease in R&D expenditure at Taro
± Guidance for 28-29% growth in revenue reiterated
± We Maintain Buy rating with a 9-month target price of Rs580
