Strides Pharma Q4 Results Review - Traction In U.S. Building Up: ICICI Securities

ICICI Securities Report

Strides Pharma Science Ltd.’s Q4 FY24 results were driven by the launch of gSuprep in the U.S. and better traction in growth and access markets. U.S. touched annual sales of $250 million in FY24 and management expects it to rise by 14- 20% in FY25; it also aims to achieve sales of $400 million in the next three years.

For FY25, management guides for 12-14% revenue growth and Ebitda between Rs 9.5-10 billion (margins of 20-22%). Strides has a strong launch pipeline for the US market in H2 FY25, which will drive overall momentum. Stelis has commercialised its drug substance division in Q4 FY24 and entered into a commercial service agreement for liraglutide with a customer, targeting launch in FY25E.

We raise our earnings estimate by 24-30% for FY25/26. We upgrade the stock to Add (from Hold) with a higher target price of Rs 1,000 (Rs 710 earlier), valuing the company at 16 times FY26E earnings.

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