Sell Thyrocare Technologies; target of Rs 307: Prabhudas Lilladher
Prabhudas Lilladher is bearish on Thyrocare Technologies has recommended sell rating on the stock with a target price of Rs 307 in its research report dated August 04, 2020.
August 08, 2020 / 12:34 PM IST
Prabhudas Lilladher's research report on Thyrocare Technologies
COVID regime has changed the business mix for THYROCAR and impacted its profitability because of 1) lower gross margin at 53% (v/s 72% YoY) due to use of high cost reagents for COVID test, 2) aggressive pricing for COVID test and 3) increased employee cost at 16% of sales (v/s 11% YoY and 13% QoQ). We remain negative on entire diagnostic chain due to possible structural change in coming years and expensive valuation at Mcap/sales of 10.3x ,PE of 60x (FY21E) and 40x (FY22E).
We maintain SELL recommendation and retain TP of Rs307 based on 18x of FY22E.
For all recommendations report, click here
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