Arihant Capital has given Buy recommendation for Marksans Pharma with a target price of Rs. 80 in its research report issued on Jun 06, 2022
Arihant Capital’s research report on Marksans Pharma
Marksans Pharma Ltd. is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulations. Its key focus area includes Over-the-Counter (OTC) and prescription (Rx) drugs. In FY22, OTC contributed 68.6% and Prescription contributed 31.4% of the total revenues. The company manufactures tablets (plain, enteric coated and film coated), hard and soft gelatin capsule, oral liquids and ointments. Its manufacturing facilities are situated at Goa, UK and USA and are accredited by USFDA, UKMHRA and Australian TGA. About 95% of the total revenues come from the regulated markets (FY22).
Outlook
We value Marksans Pharma on both the parameters EV/EBITDA (7x FY24E) and PE valuation of 10x of FY24E EPS and reduce our Target Price to INR 80 per share (earlier TP: INR 86 per share). Accordingly, we maintain our BUY rating on the stock.