Buy Hika; target of Rs 500: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on Hika

Hikal is predominantly a B2B player that provides intermediates and active ingredients to global pharmaceutical, animal health, crop protection and specialty chemical companies. Pharma and crop protection are 62% and 38% of operating revenues, respectively. The pharma business is currently divided in 50:50 ratio of APIs and CDMO. Animal health business accounts for 20-25% of CDMO business In crop protection, 69% revenues are derived from CDMO while remaining is from proprietary products, specialty chemicals & specialty biocides One of the largest suppliers of Gabapentin API (CNS) and in crop protection, one of the largest suppliers of Thiabendazole (TBZ)

Outlook

Maintain BUY on account of 1) consistency in offtake for crop protection CDMO, 2) expected recovery in Pharma, 3) Visibility capex. That said we continue to monitor developments on recent critical issues- 1) Surat (Gujrat) GIDC incident and 2) MPCB notice for Taloja. Valued at Rs 500 i.e. 22x P/E on FY24E EPS of Rs 22.6

More Info on Trent

At 14:37 hrs Hikal was quoting at Rs 385.00, down Rs 2.10, or 0.54 percent.

It has touched an intraday high of Rs 389.55 and an intraday low of Rs 381.60.

It was trading with volumes of 7,794 shares, compared to its thirty day average of 62,168 shares, a decrease of -87.46 percent.

In the previous trading session, the share closed down 0.95 percent or Rs 3.70 at Rs 387.10.

The share touched its 52-week high Rs 742.00 and 52-week low Rs 142.85 on 17 August, 2021 and 31 March, 2021, respectively.

Currently, it is trading 48.11 percent below its 52-week high and 169.51 percent above its 52-week low.

Market capitalisation stands at Rs 4,747.08 crore.

For all recommendations report, click here

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