Strides Pharma Q2 Review - Mixed Results, Divestment To Revitalise Operating Performance: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Strides Pharma Science Ltd.’s Q2 FY24 revenue growth (up 11% YoY) was better, though Ebitda margins (adjusted margins at 16.8%) were a tad weaker than anticipated. Revenue growth in the quarter was driven by other regulated markets (35% YoY) and Africa (up 36%). Strides is re-grouping its contract development and manufacturing organisation business under one umbrella ‘Onesource’ – this entity will likely clock revenues of $400 million in FY27, from $150 million in FY24E. It is also divesting a new manufacturing facility of Stelis to Syngene for Rs 7 billion and its Singapore-based facility for $15 million to Rxilient Biohub (completion in Q3 FY24). Strides Pharma aims for a strong H2 FY24 with improved profitability. It now aims to achieve the higher-end of FY24E U.S. sales and Ebitda guidance of $250 million and Rs 7,500 million respectively. We raise our FY24E EPS by ~3% while maintain our FY25 estimates. Strides has corrected ~10% since September 2023. We upgrade our recommendation to a 'Hold' (from 'Reduce') with an unchanged target price of Rs 495 based on 14 times FY25E EPS.Click on the attachment to read the full report:.Torrent Pharma Q2 Results Review - Strong Performance Across Branded Markets: Nirmal Bang .DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Strides Pharma Q2 Review - Mixed Results, Divestment To Revitalise Operating Performance: ICICI Securities

Strides Pharma aims for a strong H2 FY24 with improved profitability.

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