For 4QCY2008, Aventis Pharma results were above our expectation. The company posted a topline growth of 32.3% y-o-y to Rs270 crore (Rs204 crore) on the back of strong traction seen in both domestic and export markets.
The domestic segment grew 17.7% y-o-y to Rs201 crore while exports registered 107.9% y-o-y growth to Rs69 crore.
Operating margin expanded by 300bp to 17.3% on the back of lower employee and other expenses.
Net Profit increased 67.8% y-o-y to Rs45 crore on the back of strong growth in sales, OPM expansion and higher other income. For CY2008, topline grew 12.6% y-o-y to Rs983 crore while Net Profit grew 15.1% y-o-y to Rs166 crore.
We maintain a BUY on the stock, with a target price of Rs1,209.