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Last Updated : Sep 18, 2018 04:34 PM IST | Source: Moneycontrol.com

Buy Strides Shasun; target of Rs 480: HDFC Securities

HDFC Securities is bullish on Strides Shasun has recommended buy rating on the stock with a target price of Rs 480 in its research report dated 09 Aug 2018.

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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

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First Published on Aug 10, 2018 04:43 pm
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