Be a PRO & get up to 50% off on select brands. Explore Now

Hold Hester Biosciences; target of Rs 2870: ICICI Direct

ICICI Direct recommended hold rating on Hester Biosciences with a target price of Rs 2870 in its research report dated June 09, 2021.

June 09, 2021 / 01:10 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Hester Biosciences


Q4 revenues grew 47.1% to Rs 64.2 crore due to 74.4% growth in poultry segment to Rs 52.7 crore as bird-flu incidences led to higher usage of preventive and curative poultry vaccines and health products. However, animal healthcare segment de-grew 11.6% YoY to Rs 11.5 crore. EBITDA margins, not comparable YoY due to pandemic impacted base, came in at 30.8% (16.5% in Q4FY20). EBITDA came in at Rs 19.8 crore, ~2.8x YoY. Adjusting for exceptional loss on Patan farm disposal, PAT came in at Rs 13 crore vs. Rs 2.7 crore in Q4FY20.



Outlook


Due to the recent stock run-up, we maintain HOLD and arrive at a revised TP of Rs 2870 (earlier Rs 1765) based on base business value of Rs 2758 at 40x FY23E EPS of Rs 68.9 + NPV of Rs 112 for Covaxin DS opportunity.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jun 9, 2021 01:10 pm

stay updated

Get Daily News on your Browser
Sections
Enjoying Moneycontrol?

How about a quick survey to help us improve our services?

Ok, sure

Maybe next time!