Buy Strides Shasun; target of Rs 980: HDFC Securities

HDFC Securities' research report on Strides Shasun

After  the  proposed merger of Apotex’s Australia business, with almost 50% market  share, STR will become the largest generic player in the region. It will  also  gain the priority access to 58% of Australian pharmacies.  Till now,  three  large  generic  players  have controlled more than 78% generic market and pharmacy reach had become the major barrier for any new entrant.

Outlook

With  improving  traction  in  both  Australia and US geographies and fresh institutional  orders  for Anti-malarial products, we believe the operating performance  of  the  overall  business is likely to show sharp improvement over  next few quarters. Maintain BUY rating with a TP of Rs 980 (16x FY20E + Rs 30/sh for biopharma). For all recommendations report, click here

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