Buy Thyrocare Technologies; target of Rs 796: Prabhudas Lilladher
Prabhudas Lilladher is bullish on Thyrocare Technologies has recommended buy rating on the stock with a target price of Rs 796 in its research report dated November 12, 2018.
November 15, 2018 / 12:28 PM IST
Prabhudas Lilladher's research report on Thyrocare Technologies
Thyrocare's sales, EBITDA and Adj. PAT grew 18%, 21% and 3% YoY respectively in Q2FY19. Revenues from preventive care and sick care business revenue grew 6% and 14% YoY respectively. The growth in preventive care returned with 23% YoY growth due to redesigned package offer of bundle of tests and strong marketing in B2B segment of Aarogyam brand. This is significant improvement as revenues from preventive care grew by 23% QoQ in Q2FY19 vs tepid growth in Q1FY19 affected by competition from unorganized players. Management guided for increased focus on B-2-B business and maintain similar B-2-C growth by spending Rs90-100m p.a. on advertisements.
We maintain our earnings estimate and BUY rating with TP at Rs795 (EPS of FY19E and FY20E are changed though due to buyback of 1.78% of shares).
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