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Buy Aarti Drugs; target of Rs 910: Centrum

Centrum is bullish on Aarti Drugs has recommended buy rating on the stock with a target price of Rs 910 in its research report dated October 04, 2018.

October 04, 2018 / 17:01 IST
     
     
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    Centrum's research report on Aarti Drugs

    We maintain our Buy rating on Aarti Drugs (ADL) and retain the TP to Rs910 based on 16x March’20 EPS of Rs56.8. ADL is the market leader in 9 out of 10 APIs manufactured by the company. That said, the company is likely to benefit from vertical integration which is likely to drive future growth. We expect margins to improve post the launch of new products and additional capacities of Ciprofloxacin and Metformin APIs in place. Key risks to our assumptions include slowdown in the domestic pharma market and regulatory risks for its manufacturing facilities.

    Outlook

    We maintain our Buy rating on ADL with a TP of Rs910 based on 16x March’20E EPS of Rs56.8. ADL is likely to benefit from depreciation of rupee against the dollar.

    For all recommendations report, click here

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    Broker Research
    first published: Oct 4, 2018 05:01 pm

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