Buy Strides Pharma Sciences; target of Rs 864: Sharekhan

Sharekhan's research repor on Strides Pharma Sciences

The results missed estimates. Revenues grew 11% YoY to Rs 793 crore while the adjusted PAT at Rs 44 crore declined by 9%. Strtides expects a marked improvement in its performance in 2HFY2021 as compared to 1HFY2021, driven by a sturdy growth across segments of regulated and emerging markets. Despite of a soft 1HFY21, Strides had retained its US revenue guidance of $230mn -$250 mn for FY21. Strong growth prospects and earnings visibility, sturdy balance sheet and healthy return ratios would support multiple re-ratings.

Outlook

We retain Buy recommendation on Strides Pharma Science (Strides) with a PT of Rs 864. Q2FY2021 was a soft quarter for Strides.

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