With Omicron Spreading, Buy This Healthcare Stock For 21% Return In 6 Months: HDFC Securities

Target Price

The Current Market Price (CMP) of Thyrocare Technologies Ltd (TTL) is Rs. 1083.40. The brokerage firm, HDFC Securities has estimated a Target Price for the stock at Rs. 1310. Hence the stock is expected to give a 20.92% return, within 6 months.

 

Company performance

In FY 21, Thyrocare's Total Operating Income stood at Rs. 494.6 crore, which is expected to grow to Rs. 649.7 crore in FY 22. The company's EBITDA stood at Rs. 171.5 crore, which is expected to grow to Rs. 287.2 crore. The company's PAT stood at Rs. 113.4 crore, which is expected to grow to Rs. 225.4 crore. HDFC said, "Thyrocare Technologies Ltd clocked revenue of Rs. 176.2cr, up 15%/7% YoY/QoQ. Strong revenue growth was largely due to covid revenues with the bulk of the business coming from B2G vertical (government project)." Growth B2G vertical stood at ~41% as against 17.3% of the topline in the previous quarter.

Comments by HDFC Securities

Maintaining a buy rating, HDFC Securities stated, "In the new post-Covid normal, we believe that people's demand for assessing self-immunity and frequency of preventive check-ups will increase, which will add to the topline as TTL offers these tests at affordable costs. Thyrocare is aggressively looking to expand its network. It plans to increase its branded committed franchisees to 2,000 in FY22 and add 10 more Regional Processing Laboratories (RPLs) to improve reach, minimize logistical cost and improve sample turnaround time. Acquisition by PharmEasy (API Holdings Ltd) would help in improving the volume growth over the long term."

About the company

Thyrocare Technologies Ltd (TTL) is one of the leading pan-India diagnostic chains that conducts an array of medical diagnostic tests and profiles of tests focused on early detection and management of disorders and diseases. It works on a low-cost business model to make wellness and preventive care affordable and accessible. TTL has established a robust B2B model by servicing laboratories, hospitals, and doctors as well as catering to individual patients' needs. API Holdings, the parent company of PharmEasy, in June 2021 announced the acquisition of a 66.14% stake in Thyrocare.

(Also read: ICICI Direct Initiated Buy Call For This Diagnostic Stock, With Rs. 700 Target Price)

Disclaimer

The above stock was picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.