Buy Strides Pharma; target of Rs 930: Motilal Oswal
Motilal Oswal is bullish on Strides Pharma recommended buy rating on the stock with a target price of Rs 930 in its research report dated May 28, 2021.
June 10, 2021 / 11:33 AM IST
Motilal Oswal's research report on Strides Pharma
STR’s 4QFY21 operational performance was marginally below our estimate. The robust performance in the US/Institutional segment within emerging markets was offset by subdued sales in other regulated markets on account of COVID-19. In addition to commercial manufacturing of the Sputnik vaccine by Oct’21, STR is building a basket of COVID-related medicines. The ANDA filing momentum is expected to pick-up in FY22, providing growth visibility in the US market.
We cut our FY22E/FY23E earnings estimate by 6% each to account for increased opex associated with logistics and increased price erosion in select products. We value STR on a 12-month forward SoTP basis – EV/EBITDA of 12x/7x/6x for the Regulated/Emerging Markets/Institutional segment – to arrive at our TP of INR930/share. Maintain Buy.
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