Buy Thyrocare Technologies; target of Rs 1560: ICICI Securities

ICICI Securities research report on Thyrocare Technologies

Thyrocare Technologies (Thyrocare) Q2FY26 revenue/EBITDA/PAT was ~1%/14%/26% ahead of our expectations. Both the pathology divisions continue to boost growth with partnership/franchise segment posting 35%/20% growth driven by an uptick in volumes (up ~24%/11%, respectively). Sourcing efficiency and operating leverage drove 570bps expansion in EBITDA margin to 33%, highest level post Covid-related tailwinds. Going ahead, Thyrocare is looking to add new franchisee (100-150 per month) and partners to boost volume growth while it is also gearing to benefit from tailwinds related to cut in GST rates on diagnostics test, CGHS rate revision, and test packages for GLP-1 patients.

Outlook

We raise FY26E/27E EPS by ~20%/16% to factor in better margins. Maintain BUY; raise TP to INR 1,560.

For all recommendations report, click here