Sharekhan Places Buy On Large Cap Pharma Stock With Revised Target Price, Scrip Up 15.24% In 1 Month

Renowned brokerage firm Sharekhan has a Buy on Zydus Lifesciences with a revised target price of Rs 663 apiece. According to the given target price, the share is likely to give 14% return if purchased at the current market price. The share hit a fresh 52-week last week at Rs 588.85 apiece on BSE.

Headquartered in Ahmedabad, India, Zydus Lifesciences is a Pharmaceuticals sector company, and a part of Zydus Group. It ranks 4th in the Indian pharmaceutical industry. It is a large cap company with a market capitalisation of Rs 58,986.20 Crore.

Valuation - Maintain Buy with a revised PT of Rs. 663

According to Sharekhan, Continued strong growth in product approvals and market share gains by key products bode well for US revenue growth over FY24E and FY25E. This coupled with likely strong growth in India and other emerging markets should further drive earnings growth in FY24E and FY25E. Similarly, the Mylab stake buy points to Zydus' efforts to enhance shareholder value. "We therefore revise upwards the EPS estimates for FY24E and FY25E by ~3%/~6%, respectively. The stock trades at an attractive valuation of ~21.1x/~18.5x its FY2024/25E EPS. We maintain a Buy rating and revise the PT to Rs 663," the brokerage has said.

Stock Outlook

The stock last traded on BSE at Rs 582.75 apiece. Its intraday high and low are Rs 587.45 apiece and 578.20 apiece on BSE, respectively. Its 52-week high is Rs 588.85 apiece, and 52- week low is 338 apiece, respectively.

The stock surged 4.65% in the past 1 week. In the past 1 month, it jumped 15.24%, while in the past 3 months, it jumped 18.86%. It jumped 63.35% in the past 1 year, 65.04% in 3 years and 54.45% in 5 years, respectively.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.