Buy Rossari Biotech; target of Rs 1252: KR Choksey

KR Choksey is bullish on Rossari Biotech has recommended buy rating on the stock with a target price of Rs 1252 in its research report dated August 10, 2022.

Broker Research

August 11, 2022 / 15:35 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Rossari Biotech

Rossari Biotech consolidate revenue grew by 88% yoy at INR 4,347Mn (5% below KRC estimates) which includes mergers’ impact and can’t be compared directly with Q1FY22; however, it has observed decline by 1% qoq in revenue. Standalone revenue reported at INR 2,337Mn (+14.6% yoy / -10.7% qoq). EBITDA reported at INR 577Mn (+52% yoy / +10% qoq; 5% above KRC estimates); as EBITDA margin reported at 13.3% (-310bps yoy / +136.3bps qoq) on account of price increases and softening of raw material prices (above KRC estimates of 12.0%). PAT reported at INR 286.81 (17% yoy / 19% qoq) as against INR 240.8Mn in Q4FY22. PAT margin stood at 6.6% (-402bps yoy / 111bps qoq). Diluted EPS reported at INR 5.18 as against INR 4.35 in Q4FY22 and INR 4.49 in Q1FY22.

Outlook

We estimate PAT to grow at 54% CAGR over FY22-24E with EBITDA margin range of 13.5% - 15.5%. We retain our target price at INR 1,252/share (P/E multiple 30x to FY24 EPS) and retain our BUY recommendation on the stock (upside: 33.9%).

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