Buy Strides Shasun; target of Rs 480: HDFC Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

HDFC Securities' research report on Strides Shasun

Improved performance in US was the key takeaway from Strides’ 1QFY19 result, although overall operational numbers remained weak. Revenue at Rs 6.6bn was flat YoY and QoQ. EBITDA margin was weak too at 12.2% v/s 13% in 4QFY18. The company reported loss of Rs 42mn in 1QFY19; sticky depreciation and interest cost to the tune of Rs 860mn eroded the profits.

Outlook

The additional US$ 15-20mn quarterly revenues from key products  can  translate  into  Rs  500-600mn  incremental EBITDA in coming quarters,  taking overall company margins to ~16-17%. Upgrade to BUY with a TP of Rs 480 (15x FY20E+ Rs 30/sh for biopharma).

For all recommendations report, 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.

Read More