Hold Hester Biosciences, target price Rs 2870: ICICI Direct

ICICI Direct has hold call on Hester Biosciences with a target price of Rs 2870. The current market price of Hester Biosciences Ltd. is Rs 2734. Time period given by analyst is one year when Hester Biosciences Ltd. price can reach defined target.

Hester Biosciences Ltd., incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 2319.82 Crore) operating in Agriculture/Horticulture/Livestock sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 58.16 Crore, up 8.41 % from last quarter Total Income of Rs 53.65 Crore and up 14.06 % from last year same quarter Total Income of Rs 50.99 Crore. Company reported net profit after tax of Rs 12.87 Crore in latest quarter.

Investment Rationale
Despite exports being impacted by air shipment restrictions due to Covid, Hester ended FY21 on a relatively strong note amid strong demand for poultry vaccines and health products in domestic market. Going ahead, opportunities panning out from animal vaccines such as classical swine fever, lumpy skin disease (only player) and sheep pox (only player) in the domestic space besides increased focus on health products, growth prospects look promising for Hester. Additionally, the management intends to move away from preventive healthcare to curative healthcare as a long term strategy. As the company strengthens its hold in the overall animal healthcare space, the next important aspect would be its progress in the human vaccines space (via maiden Covaxin adjuvant foray) in the long run.

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