Buy Strides Arcolab; target of Rs 1420: Religare

Religare's research report on Strides ArcolabSTR’s Q3 earnings were broadly in line and the company is set to meet the lower end of its H2 EBITDA guidance of Rs 3.5bn-3.8bn. STR continued to strengthen its global base, acquiring a 51% stake each in Generic Partners Holding and Universal Corporation, thus enhancing its presence in the key Australia and Africa markets. With the acquisition spree now over (as per management), we expect STR to focus on integrating these assets in the medium term. BUY; Mar’17 TP Rs 1,420 (from Rs 1,570).We tweak our FY16/FY17/FY18 earnings estimates by -18%/+4%/-2% to factor in the recent equity dilution and acquisitions of Generic Partners Holding (Australia) and Universal Corporation (Kenya).For all recommendations, 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.

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