Strides Pharma Q2 Results Review - U.S. Scaling To New Highs: ICICI Securities

ICICI Securities Report

Strides Pharma Science Ltd.’s Q2 FY25 results were driven by strong performance in U.S. (up 23% YoY) and growth markets (24.8%). U.S. sales touched a new high of $75 million in quarterly revenue and management expects performance to improve in Q3 FY25.

Management now aims to achieve the higher-end of its FY25 guidance with overall revenues growing at 15%, Ebitda of Rs 10 billion and U.S. sales of ~$300 million. OneSource had recently raised $95 million at a pre-money valuation of $1.65 billion, which shall be used towards repayment of debt ($45 million) and $50 million towards increasing its cartridge and pen capacity for GLP-1s from 40 million (fully booked) to 150 million units by Q4 FY26E.

We raise our FY25E/FY26E Ebitda by 8–9%, but cut our EPS estimate by 4–6% for FY25-26E to factor joint venture losses. Maintain Buy; target price revised to Rs 1,800, valuing Strides at six times (unchanged) and OneSource at 23 times (20 times earlier)

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