StocksMarket.in

Buy Strides Pharma Science; target of Rs 530: Geojit

March 18
16:25 2019

Geojit’s research report on Strides Pharma Science

Strides Pharma science (SS) is a R&D focussed, vertically integrated pharmaceutical company with an experienced management team and presence across multiple speciality therapeutic segments. SS to exit Australian business for ~394m AUD and a new supply deal will be struck in its place with Arrotex (Arrow- Apotex merged entity). More focus to the US markets as they are witnessing strong business momentum driven by new product launches. Regulated market saw high growth rate (55% YoY) driven by better business environment in key markets & portfolio expansion. We adjust our Revenue / PAT estimate for FY20E by 14%/21% resp. to factor sale of Australian business (~700crs).

Outlook

However we forecast Rev/PAT to grow by 13/57% in FY21 on better performance from the US and value SS at a multiple of 18x on FY21E EPS and upgrade the rating to Buy from Accumulate.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Related Articles

Archives