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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
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Todays L/H

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.


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

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

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