ICICI Direct has given Reduce recommendation for Hester Biosciences with a target price of Rs. 2015 in its research report issued on Aug 16, 2022

ICICI Direct’s research report on Hester Biosciences

Hester is one of India’s leading animal healthcare companies & the second largest poultry vaccine manufacturer in the country. It has a strategic presence in 30+ countries with key markets being India, Nepal and Tanzania. It operates through four broad verticals: poultry vaccines, poultry health products, animal vaccines and animal health products • Revenue segment wise: poultry healthcare:73%, animal healthcare: 27%.

Outlook

Downgraded from HOLD to REDUCE due to adverse demand environment for poultry vaccines, slower ramp-up in Africa business, delay and uncertainty in execution of tenders along with dwindling margins. We value Hester at Rs 2015 (base business at Rs 1967 i.e. 38x FY24E EPS of Rs 51.8 + NPV of Rs 49 for Covaxin DS opportunity).

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