Wockhardt to Outperform: Macquarie

Macquarie has initiated coverage on Wockhardt with an ‘Outperform’ rating and set a target price of Rs 900.

The investment banker believes the worst is now well behind the company, as Wockhardt Pharma has adopted a ‘more and more with less and less’ mantra to pull itself out of the financial difficulties it got itself into in 2008 when it had to approach the corporate debt restructuring (CDR) cell to restructure loans.

“We believe valuations remain compelling, despite the receding leverage overhang and significant operational improvement with the EBITDA margin up 1,100 bps in the past eight quarters driven by niche product launches in the US and the restructuring of the troubled, acquired French entity (Negma) said the report.