4 THYROCARE share price target reports by brokerages below. See what is analyst's view on THYROCARE share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The stock trades at PER of 21.8x and 20.1x FY20E and FY21E respectively. With favorable seasonality Q4FY20E and lower base, we expect THYROCAR to grow at 15% YoY growth in revenues and 21% YoY growth in PAT due to lower tax rate to 25.2% from 34% in FY20E. While diagnostic companies are expected to trade at premium valuation with features of consumer’s business, THYROCAR valuation is at sharp discount to its peers. With earnings improvement and attractive valuation vs. peers, we increased our TP to Rs686 (from Rs595) and ‘BUY’ recommendation.
We maintain a ‘BUY’ rating and value Thyrocare at 24.2x FY21E EPS of Rs. 21.7 for a target of Rs. 526. Weaker than expected performance of additional employees hired and further depreciation of INR could pose a threat to our call.
Q1 Sales inline; Focus on growth to stave off competition from start ups The stock trades at PER of 23.8x and 21.5x FY20E and FY21E respectively. With favorable H2FY20E, we expect Thyrocare to at least 15% YoY growth in revenues and 15% YoY growth in PAT in FY20E as it focuses on EBITDA growth instead of profitability. Management guided that price rationalisations and advertisement (guided at 4-5% of sales) costs may impact EBITDA margin of its pathology business maximum by 400-500bps. While diagnostic companies is expected to trade at premium valuation with features of consumers business, Thyrocar valuation has been corrected by 36% in 12 months. With attractive valuation vs. peers, we maintain our earnings estimate and BUY rating with TP at Rs595.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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