Buy Suven Pharmaceuticals; target of Rs 587: Geojit

Geojit's research report on Suven Pharmaceuticals

Suven Pharmaceuticals Ltd (SPL) demerged away from Suven Life Sciences in 2018 and was listed on 9th March 2020. During the year total revenues grew by 27% to Rs.834crs driven by 18% growth in CRAMS, 41% growth in Speciality chemicals and 40% growth in Formulations. In the formulation segment, the company has files 11 ANDAs with the USFDA out of which 2 have already commercialised, while 3 are expected to be commercialised in the coming year. SPL's 25% stake in Rising Pharma yielded an unrealized profit of Rs.48crs during the year.

Outlook

We recommend a "Buy" with a target price of Rs.587 based on 18x FY22 EPS.

Suven Pharmaceuticals 02072020-geojit

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