Hold Hester Biosciences; target of Rs 1830: ICICI Direct

ICICI Direct's research report on Hester Biosciences

Hester is one of India’s leading animal healthcare companies & the second largest poultry vaccine manufacturer in the country. It has a strategic presence in 30+ countries with key markets being India, Nepal and Tanzania. It operates through four broad verticals: poultry vaccines, poultry health products, animal vaccines and animal health products • Sales break-up for Q3FY23: Poultry healthcare: 42%, Animal healthcare: 58%.

Outlook

We maintain HOLD as we monitor the ramp-up in animal healthcare, Africa business, opportunities in pet-care to mitigate slump in legacy poultry vaccines segment. We value Hester at Rs 1830 (base business at Rs 1794 i.e. 30x FY25E EPS of Rs 59.8 + NPV of Rs 35 for Covaxin DS opportunity).