Hold Thyrocare Technologies, target price Rs 1231: ICICI Securities

ICICI Securities has hold call on Thyrocare Technologies with a target price of Rs 1231. The current market price of Thyrocare Technologies is Rs 1149. Time period given by analyst is one year when Thyrocare Technologies Ltd. price can reach defined target.
Thyrocare Technologies Ltd., incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 6069.19 Crore) operating in Hospitals & Allied Services sector.

Thyrocare Technologies Ltd. key Products/Revenue Segments include Diagnostics, Sale of services, Other Operating Revenue and Glucose Strips/Gluco Meter for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 191.40 Crore, up 9.28 % from last quarter Total Income of Rs 175.14 Crore and up 20.96 % from last year same quarter Total Income of Rs 158.24 Crore. Company reported net profit after tax of Rs 77.92 Crore in latest quarter.


Investment Rationale
The brokerage raises revenue and EBITDA estimates in FY22E by ~13% and ~26% to factor the one-time sales in Q2FY22. However, it cuts FY23E revenue and EBITDA estimates by ~6% and ~8% to factor the slow recovery in base pathology business. It maintains HOLD on the stock with a revised DCF-based target of Rs1,231/share, implying 41.8xFY23E earnings and 28.2xFY23E EBITDA (earlier: Rs1,300/share). Key downside risks: slow recovery in base business continues. Key upside risks: faster recovery in preventive care business, and incremental tie-ups with standalone labs for sample processing.

Promoter/FII Holdings
Promoters held 71.22 per cent stake in the company as of 30-Sep-2021, while FIIs owned 12.1 per cent, DIIs 6.6 per cent.