Motilal Oswal maintains 'buy' on Shilpa Medicare

Mumbai: Motilal Oswal has maintained 'buy' rating on Shilpa Medicare with a target price of Rs 749. The brokerage said the receipt of establishment inspection report, with unchanged status for the Jadcherla formulations facility from the US Food and Drug Administration is a positive as it minimises regulatory risk over the medium term.

Motilal Oswal said the company's pipeline of abbreviated new drug applications remains robust.

"We remain positive on SLPA on the back of robust product pipeline for US market and stable base business. We expect 16% CAGR (compounded annual growth rate) in sales to INR12b (Rs 12 billion) and 35% CAGR in PAT to INR2.7b (Rs 2.7 billion) over FY17-FY20," said Motilal Oswal.