Buy Hikal, target price Rs 340: ICICI Direct

ICICI Direct has buy call on Hikal with a target price of Rs 340. The current market price of Hikal is Rs 289.2.
Time period given by analyst is one year when Hikal Ltd. price can reach defined target.

Hikal Ltd., incorporated in the year 1988, is a Small Cap company (having a market cap of Rs 3634.29 Crore) operating in Pharmaceuticals sector.


Hikal Ltd. key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Sale of services, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 502.62 Crore, down -2.42 % from last quarter Total Income of Rs 515.10 Crore and down -6.11 % from last year same quarter Total Income of Rs 535.33 Crore. Company reported net profit after tax of Rs 20.71 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY despite near term headwinds as it continues to believe in the company’s execution prowess, visibility capex and the management’s expectation of gradual business normalisation in both segments. Recent steep correction continues to offer decent risk-reward proposition. That said it continues to monitor developments on recent critical issues- 1) Surat (Gujrat) GIDC incident and 2) MPCB notice for Taloja

Promoter/FII Holdings
Promoters held 68.77 per cent stake in the company as of 31-Mar-2022, while FIIs owned 6.92 per cent, DIIs 0.88 per cent.