Hikal can test Rs 350, says SP Tulsian

1221 Investors following Hikal. Share this News with them.

0

Like this story, share it with millions of investors on M3

Hikal can test Rs 350, says SP Tulsian

Hikal can test Rs 350 in one year, says SP Tulsian, sptulsian.com.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Hikal See messages about Hikal

Hikal can test Rs 350 in one year, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Hikal is very strong in R&D and contract research manufacturing. If you see their business model, they have been making API (Advanced Pharmaceutical Ingredients) and specialty chemicals for the pharmaceutical and agrochemical industries. Apart from that, they have been acting as a link with the actual users of the API as well as being an innovator. They have a very strong business model and the company has been showing consistent improvement in financial performance also because there are lot many products which are in the pipeline which will get capitalized in the time to come."

He further added, "For first nine months, the financial performance has shown a growth of 30% in topline as well as in bottomline, and because of that, the first nine months EPS of the company is close to at about Rs 24. It was at Rs 18 in the comparable period and about Rs 25 for whole of FY11."

"As I said, because of the strong product pipeline and strong R&D and CRAMS business, the growth trend is likely to continue. If you see the shareholding pattern, promoters are having a stake of close to about 69-70%; HNIs hold quite a good quantity of the stock. With the consistent improvement in performance, I think that the stock is looking quite good and a price of about Rs 350 can be expected in next one year or so."