Hold Hester Biosciences; target of Rs 2070: 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 • Revenue segment wise: poultry healthcare: 49%, animal healthcare: 51%.

Outlook

Upgraded from REDUCE to HOLD but maintain neutral stance as we monitor ramp-up in Animal Healthcare, Africa business, opportunities in pet-care to mitigate slump in legacy poultry vaccines segment. We value Hester at Rs 2070 (base business at Rs 2051 i.e. 35x FY24E EPS of Rs 58.6 + NPV of Rs 16 for Covaxin DS opportunity).