Strides Shasun Gets Rated New Buy For Second Time This Year
The price target was, however, the third lowest among the analysts tracked by Bloomberg.
Bengaluru-based Strides Shasun Ltd. received its second new buy rating of 2018.
Homegrown brokerage Antique Stock Broking says shares of the drugmaker could gain around 35 percent to Rs 970 apiece within 12 months. This follows an earlier 'Buy' call from another domestic brokerage IIFL Ltd.
The scrip has 12 buy ratings and no sell ratings, Bloomberg data showed.
With the strategic focus clear, as evident in the slew of divestments and completion of the investment cycle, Strides is in a good position to extract operating leverage, which will also be complemented by a reduction in leverage.Antique Stock Broking Research Report
The brokerage forecasts 20 percent compounded growth rate in its revenue and 560 basis points improvement in operating margins through the financial years till March 2020. It also expects its net debt/Ebitda to reduce from 2.9 times to 1.2 times in two years.
“Strides’ industry-leading growth trajectory in the next five years will be a culmination of investments that it has made in the last three years, especially in Australia and the U.S.”, Antique said in its research note.
Shares of Strides Shasun traded flat at Rs 724.10 in today trade. The stock is 27 percent below Bloomberg one-year price target. The scrip trades at 19.3 times trailing 12-month earnings per share and 31 times its estimates for the coming year, Bloomberg data showed.