Accumulate Strides Pharma Science; target of Rs 731: Geojit

Geojit recommended accumulate rating on Strides Pharma Science with a target price of Rs 731 in its research report dated December 26, 2023.

Broker Research

December 27, 2023 / 15:48 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Geojit's research report on Strides Pharma Science

Strides Pharma Science Ltd. (STAR) is an R&D focussed, vertically integrated pharmaceutical company with an experienced management team having presence across multiple therapeutic segments. Strides reported its H1FY24 consolidated revenue at Rs.1,929cr (5% YoY) with continued momentum in both the U.S and regulated markets. The US markets witnessed a 17.1% YoY growth in H1FY24. Cost control measures and softening freight costs have resulted in an EBITDA expansion by 846bps in H1FY24 to Rs.320cr. Strides plans to divest its Singapore facility to a Rxlinet Biohub and the Stellis plant to Syngene, thereby reduce debt. Driven by effective debt reduction, cost optimisation, growth in the US business owing to a strong pipeline and redefining CDMO business, we expect healthy traction in the coming quarters.

Outlook

However, in light of the recent rise in the prices and growing concerns on higher valuation, we downgrade our rating to “Accumulate” based on 36x FY26E EPS and a target price of Rs. 731.

For all recommendations report, click here