Buy Thyrocare Technologies; target of Rs 795: Prabhudas Lilladher
Prabhudas Lilladher is bullish on Thyrocare Technologies has recommended buy rating on the stock with a target price of Rs 795 in its research report dated August 14, 2018.
September 18, 2018 / 01:28 PM IST
Prabhudas Lilladher's research report on Thyrocare Technologies
Thyrocare's sales, EBITDA and Adj. PAT grew 11%, 13% and 7% YoY respectively in Q1FY19. Revenues from preventive care and sick care business revenue grew 6% and 14% YoY respectively. The growth in preventive care was tepid due to increased competition from unorganized players and reduced promotional costs. Management guided for increased focus on B-2-B business and maintained similar B-2-C growth by spending 4-5% of sales in advertisements in FY19E.
We expect the earnings growth to be slower in FY20 at 22%. With strong free cash flow we expect diagnostic companies to trade at premium valuations. We maintain our earnings estimate and BUY rating with TP at Rs795 (PER of 35x FY20E)
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