Dr. Agarwals Health Care Ltd.'s shares jumped 5.6% to a high of Rs 521 on Wednesday, after receiving upgrades from global brokerages Jefferies and Morgan Stanley.
Jefferies has upgraded the stock from 'hold' to 'buy' and raised its target price to Rs 600 from Rs 510 citing faster ramp-up of new facilities driven by strong volume-led growth.
The brokerage also noted that execution and performance remained strong in quarter ended June 30, and expansion continues across all regions.
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Same Store Sales Growth (SSSG) remained robust, and the company registered mid-teens volume growth as well as premiumisation.
"Dr Agarwal's Healthcare commands a leading position in a fragmented but fast-growing eye care market in India. We increase our FY27-29E EBITDA estimates by 3-4% and upgrade the rating to a Buy (from Hold) on account of faster ramp-up of new facilities driven by strong volume-led growth," Jefferies stated in its note.
Additionally, Dr. Agarwals Health has also bagged a price target hike from Morgan Stanley, after the brokerage maintained its 'overweight' rating on the share.
MS has hiked the price target to Rs 576 from Rs 555 on attractive valuation, strong SSSG, improving Return on capital employed (ROCE), and a large untapped market opportunity.
Share Price
The share price pared some gains to trade 5.06% higher at Rs 518.45 apiece, as of 12:30 p.m. on the NSE. This compared to 0.19% decline in the benchmark Nifty index on Wednesday.
The share price has risen 2.16% year-to-date and 13.06% in the last twelve months.
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