HDFC Securities is bullish on Strides Shasun has recommended buy rating on the stock with a target price of Rs 980 in its research report dated May 10, 2018.
HDFC Securities' research report on Strides Shasun
After the proposed merger of Apotex’s Australia business, with almost 50% market share, STR will become the largest generic player in the region. It will also gain the priority access to 58% of Australian pharmacies. Till now, three large generic players have controlled more than 78% generic market and pharmacy reach had become the major barrier for any new entrant.
Outlook
With improving traction in both Australia and US geographies and fresh institutional orders for Anti-malarial products, we believe the operating performance of the overall business is likely to show sharp improvement over next few quarters. Maintain BUY rating with a TP of Rs 980 (16x FY20E + Rs 30/sh for biopharma).For all recommendations report, click here
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