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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
 
 
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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).



Outlook


We maintain SELL recommendation and retain TP of Rs307 based on 18x of FY22E.



For all recommendations report, click here


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first published: Aug 8, 2020 12:34 pm

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