Comments
Geojit Financial Services
Strides Pharma (Hold)
CMP: ₹323.55
Target: ₹357
Strides Pharma science is an R&D-focussed, vertically integrated pharmaceutical company with an experienced management team and presence across multiple therapeutic segments.
Strides posted a 22 per cent growth in revenues in Q3FY20 (excluding Australia business which was shut down in FY19), led by strong performance in the US.
The US sales grew 62 per cent y-o-y (16 per cent q-o-q) during the quarter, with the move to front end sales paying dividends.
Other regulated markets saw 54 per cent in y-o-y growth in revenue, led by successful product launches, increasing market share and improved product management.
The company received an EIR from USFDA for the new manufacturing plant it acquired in Florida this year. This will help the company to scale up its private label business in the US.
We upgrade the rating to ‘hod’ with a target price of ₹357 based on a 7x FY22E EPS multiple, as we expect front end sales and the US revenues to drive growth.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.