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    Buy Amrutanjan Health Care, target price Rs 970: HDFC Securities

    Synopsis

    Amrutanjan Health Care Ltd. key Products/Revenue Segments include Pharmaceuticals, Sale of services, Scrap, Raw Materials for the year ending 31-Mar-2020.

    HealthcareAgencies
    However the brokerage feels that there is a scope for some upward valuation re-rating in the stock currently.
    HDFC Securities has buy call on Amrutanjan Health Care Ltd. with a target price of Rs 970. The current market price of Amrutanjan Health Care is Rs 839.2.

    Time period given by analyst is six months when Amrutanjan Health Care Ltd. price can reach defined target.
    Amrutanjan Health Care Ltd., incorporated in the year 1936, is a Small Cap company (having a market cap of Rs 2454.64 Crore) operating in Pharmaceuticals sector.

    Amrutanjan Health Care Ltd. key Products/Revenue Segments include Pharmaceuticals, Sale of services, Scrap, Raw Materials for the year ending 31-Mar-2020.

    Financials
    For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 80.95 Crore, down -16.29 % from last quarter Total Income of Rs 96.70 Crore and up 66.35 % from last year same quarter Total Income of Rs 48.66 Crore. Company reported net profit after tax of Rs 12.06 Crore in latest quarter.

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    Investment Rationale
    AHCL’s earnings grew at a CAGR 17% FY17-21. Going forward, the brokerage is positive on the future growth prospects and expect AHCL to be ahead of the category performance mainly in the OTC segment. AHCL’s revenue and PAT is likely to record a growth of 17.5% and 16.7% CAGR over FY21-23E. Along with this the brokerage expects the company to generate consistent FCF with consistent high ROEs. The Comfy brand is expected to be the key growth driver for AHCL. It expects, “Comfy” revenues to grow at CAGR 28% while other OTC products are expected to grow at CAGR 13.2% over FY21-23E. Though AHCL is in branded personal are segment, it may not get the valuations that other FMCG players get due to its single brand and single segment concentration, though it has been working to diversify that and has succeeded to some extent so far. However the brokerage feels that there is a scope for some upward valuation re-rating in the stock currently.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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