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Hold Hikal; target of Rs 375: ICICI Direct

ICICI Direct recommended hold rating on Hikal with a target price of Rs 375 in its research report dated February 03, 2023.

February 07, 2023 / 05:54 PM IST
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ICICI Direct's research report on Hikal

Hikal is predominantly a B2B player that provides intermediates and active ingredients to global pharmaceutical, animal health, crop protection and specialty chemical companies. Pharma & crop protection comprise 54% & 46% of sales, respectively. Pharma business (including animal healthcare) is currently divided into 60:40 ratio between APIs and CDMO • In crop protection, ~70% of sales are derived from CDMO while remaining is from proprietary products, specialty chemicals & specialty biocides • One of the largest suppliers of Gabapentin API (CNS). In crop protection, one of the largest suppliers of Thiabendazole (TBZ).


Upgrade from REDUCE to HOLD as we await recovery in EBITDA margin to reach base level of 18-20% and also consistency in performances. Valued at Rs 375 i.e. 18x FY25E EPS of Rs 20.7

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Hikal - 06 -02 - 2023 - ic

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first published: Feb 7, 2023 05:54 pm