Merrill Lynch - Larsen and Tourbo, Panacea Biotec

Merrill Lynch on L&T

We came back reassured of our bullish stance on L&T, with the management reiterating its strong growth guidance & the possibility of further margin expansion at our Asia conference. Besides, the potential listing of its L&T IT in 2008 is on track & new projects addition at L&T Infra subs., ensure value creation. Buy

Price target of 2150


Merrill Lynch on Panacea Biotec

Panacea’s 4Q PAT of Rs234mn (104% growth YoY) was 27% ahead of MLe, buoyed by strong 66% YoY growth in revenues (Rs2.26bn). As in the previous quarters, both vaccines and domestic business registered strong growth of 74% and 37% YoY, respectively. Despite a sharp 250% increase in personnel expense (YoY) and 60% increase in R&D spend, EBITDA margin for 4Q remained high at 19%. Reiterate Buy with PO of Rs513/share.