Accumulate Suven Life Sciences, target Rs 238: Systematix
The 4QFY16 performance was driven by non-recurring elements like repeat orders from an innovator client and strong execution in specialty chemical business, while core CRAMS business declined in 4Q and FY16 as well.
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| Updated: Systematix Institutional Equities maintains an accumulate rating on Suven Life Sciences post march quarter results with a 12-month target price of Rs 238.
The 4QFY16 performance was driven by non-recurring elements like repeat orders from an innovator client and strong execution in specialty chemical business, while core CRAMS business declined in 4Q and FY16 as well.
"We have lowered the EPS estimates by 13% and 3% for FY17e and FY18e respectively, mainly to factor (a) higher R&D expense (US$10mn) on SUNVN-502 and (b) higher proportion of specialty chemical business eroding the combined EBITDA margin," said the brokerage note.
The 4QFY16 performance was driven by non-recurring elements like repeat orders from an innovator client and strong execution in specialty chemical business, while core CRAMS business declined in 4Q and FY16 as well.
"We have lowered the EPS estimates by 13% and 3% for FY17e and FY18e respectively, mainly to factor (a) higher R&D expense (US$10mn) on SUNVN-502 and (b) higher proportion of specialty chemical business eroding the combined EBITDA margin," said the brokerage note.
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