Pfizer collectively addresses 15 therapy areas in the domestic formulations with a portfolio of over 150 products that include therapeutics & vaccines. The company has been continuously restructuring its portfolio in the last few years to improve the productivity of its core brands.
Revenues growth was subdued this quarter due to decline in VMS and Anti-Infective therapies offtake in Q4FY22 on YoY basis.
Pfizer’s share price has grown by ~2.5x over the past five years (from ~₹ 1706 in May 2017 to ~₹ 4378 levels in May 2022).
Valued at ₹ 4810 i.e. 30x P/E on FY24E EPS of ₹ 160.3
Apart from Pfizer, among MNC coverage we like Abbott.
BUY with target price of ₹ 20560
|Particulars||FY19||FY20||FY21||FY22||5 Year CAGR(FY17-FY22)||FY23E||FY24E||2 Year CAGR (FY22-FY24E)|
|EBITDA margins (%)||27.2||26.6||31.8||32.0||-||31.1||32.0||-|
|M.Cap/ Revenues (x)||9.6||9.3||8.9||7.6||-||7.1||6.5||-|
|EV to EBITDA (x)||31.8||30.9||26.4||21.9||-||20.4||17.4||-|
Q4FY22 Results: Steady performance
Q4 revenues was below I-direct estimates while margins were a beat. According to IQVIA MAT Mar,22, Respiratory, Anti-Infective and Cardiac were the top growing therapeutic areas on YoY basis. However, besides quarterly variations Pfizer posted revenues growth of 20% to | 2611 crore with margins at 32% in FY22. We continue to believe in Pfizer’s strong growth track record in power brands and capability in new launches on a fairly consistent basis.
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