NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
The acquisition of Nerbe's (Germany) low-margin business and a slowing in the life sciences industry impacted Tarsons Products Ltd.’s Q4 FY24 performance; its numbers fell short of our expectations too.
Tarson’s standalone business fared better – exports grew faster, at ~12% YoY in Q4 FY24, and domestic sales were up ~2% YoY. Panchla plant is expected to commence operations in Q2 FY25 while the cell culture unit will be operational in Q4 FY25. The Panchla plant can generate revenues of Rs 4 billion at peak capacity in three–five years post commercialisation.
We cut FY25E/26E earnings per share by 20%/29%, factoring in lower sales and margins of Nerbe (CY23 revenue/Ebitda of €8 million/ €0.2 million). We lower our rating to Add (Buy earlier). Target price revised to Rs 445 at 17 times FY26E enterprise value/Ebitda (from Rs 625 at 17 times FY26E EV/Ebitda).
Click on the attachment to read the full report:
Also Read: GMR Airports Q4 Results Review - A Host Of Positives But Priced To Perfection: ICICI Securities
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.