Founded in 1988, Hikal Limited (HIKAL) is a Leading Sustainable Technology driven company serving the Crop Protection & Pharmaceutical Industries.
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The company also provides research services and custom manufacturing to its clients.
Anand Rathi has given buy rating to Hikal with a target price of Rs 193. The share price moved up by 3.46 per cent from its previous close of Rs 148.75. The stock’s last traded price is Rs 153.90.
Founded in 1988, Hikal Limited (HIKAL) is a Leading Sustainable Technology driven company serving the Crop Protection & Pharmaceutical Industries. The company is on of few Indian Companies to provide Active Ingredients for both Pharmaceuticals and Agrochemicals industries and is a preferred supplier to large global customers across the regulated markets. The company also provides research services and custom manufacturing to its clients.
Financials For the quarter ended 31-03-2020, the company reported a Consolidated sales of Rs 374.10 Crore, down -4.69 % from last quarter Sales of Rs 392.51 Crore and down -17.16 % from last year same quarter Sales of Rs 451.58 Crore. The Company reported net profit after tax of Rs 24.47 Crore in latest quarter.
Investment Rationale Going ahead, the brokerage expects company to post improvement in margins on back of increase in high value addition products, better cost efficiency on backward integration and expansion in both pharma and crop protection businesses. It expects that worst for the company is behind and recent events leading to moving away from uncertain Chinese supplies could add tailwinds to the company’s business. It has initiated coverage on the company with a BUY rating and a target price of Rs 193 per share.
