Buy Strides Pharma Sciences; target of Rs 450: Sharekhan

Sharekhan is bullish on Strides Pharma Sciences Ltd has recommended buy rating on the stock with a target price of Rs 450 in its research report dated June 01, 2023.

Broker Research

June 06, 2023 / 13:51 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on Strides Pharma Sciences

Strides continued to post strong numbers in Q4FY2023 with the 6th. consecutive quarter of a sequential improvement in EBITDA margins to ~15.8% from ~0.6% in Q3FY2022. Revenues grew by ~13.9% y-o-y to Rs. 986.4 crore; adjusted PAT stood at Rs. 34.2 crore versus Rs. 148.9 crore in Q4FY22 and Rs. 0.23 crore in Q3FY23. The regulated Markets of US, Europe, UK, and South Africa continued to grow at a strong rate in Q4FY2023, since Q1FY2023. They grew at an average ~35.2% rate each quarter of FY23 (y-o-y) vs. an average decline of -14.4% seen in the 4 quarters of FY22, y-o-y. Management is hopeful of reaching historical margins of ~20%-21% in the short – medium term vs. ~11.7% EBITDA margins recorded in FY23.

Outlook

Stock trades at reasonable valuations of ~17.4x/10.0x its FY2024E/FY2025E earnings vs peers trading at ~20.0x/16.0x its FY24E/FY25E EPS. We retain a Buy on the stock with an unchanged PT of Rs. 450.

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