Add Tarsons Products, target price Rs 590: ICICI Securities

ICICI Securities has add call on Tarsons Products with a target price of Rs 590. The current market price of Tarsons Products is Rs 525.55.

Tarsons Products, incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 2794.13 Crore) operating in Hospitals & Allied Services sector.

Tarsons Products key Products/Revenue Segments include Plastic Products, Medical Equipment and Scrap for the year ending 31-Mar-2023.

Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 87.52 Crore, up 19.68 % from last quarter Total Income of Rs 73.12 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company has reported net profit after tax of Rs 29.46 Crore in latest quarter.

Investment Rationale
The company is now spreading its wings in niche areas like cell culture and is adding two new plants at Panchla and Amta (both in West Bengal) which the brokerage believes may double its available capacities by CY24E. Excessive inventory in the system and overheads of new plants may keep a check on growth in the near term. The brokerage re-initiates coverage on the stock with ADD rating.

Promoter/FII Holdings
Promoters held 47.31 per cent stake in the company as of 30-Jun-2023, while FIIs owned 8.64 per cent, DIIs 7.38 per cent.