Buy Strides Shasun Ltd. target Rs 920 : HDFC Securities

HDFC Securities has Buy on Strides Shasun Ltd. with a target price of Rs 920. The current market price of Strides Shasun Ltd. is Rs 702.05. Time period given by the brokerage is 4-6 quarters when Strides Shasun Ltd. price can reach defined target.

HDFC Securities said, “Strides has rebuilt its business and R&D capabilities through a series of acquisitions over the last three years. The investment cycle is now largely behind the company, having achieved a critical mass in its key markets of Australia and the US. Given the investments made in the Infrastructure and Product portfolios, we expect operating leverage to play out, driven by the execution and revenue ramp up. Recent divestments of the low-margin segments (API, India) should further improve the business mix and deleverage the balance sheet.”