Geojit's research report on Strides Pharma Science
Strides Pharma Science (STAR) is an R&D focussed, vertically integrated pharmaceutical company with an experienced management team having presence across multiple therapeutic segments. Strides reported its Q4FY22 revenue at Rs.866cr (9% QoQ, -4.7% YoY), with the US business (38% of total revenue) clocking 17% QoQ growth. Unusual price erosion and volume drops in the US led to contraction in EBITDA (-73.4% YoY) to Rs.42cr with EDITDA margin contracting 430 bps QoQ. Stelis Biopharma revenues were reported at $17.7mn (from a zero base) in FY22, securing commercial sales value of $85mn starting FY24. We expect a revenue CAGR of 20% over FY22-FY24E on the portfolio expansion, healthy order book, better cash flows and focus on debt & cost reduction.
Hence, we reiterate our “Accumulate’ rating based on 14x FY24E EPS at target price of Rs.355.
At 16:01 hrs Strides Pharma Science was quoting at Rs 312.45, up Rs 15.55, or 5.24 percent.
It has touched an intraday high of Rs 314.15 and an intraday low of Rs 296.40.
It was trading with volumes of 30,464 shares, compared to its thirty day average of 41,922 shares, a decrease of -27.33 percent.
In the previous trading session, the share closed down 2.51 percent or Rs 7.65 at Rs 296.90.
The share touched its 52-week high Rs 817.45 and 52-week low Rs 263.45 on 06 July, 2021 and 11 May, 2022, respectively.
Currently, it is trading 61.78 percent below its 52-week high and 18.6 percent above its 52-week low.
Market capitalisation stands at Rs 2,805.92 crore.
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