Buy Sequent Scientific, target price Rs 130: Yes Securities
Also bring in FY25 forecast and, while the brokerage still remains positive despite the sharp cuts, reckon recovery is firmly delayed by a year; roll over to FY25 forecast and retain BUY with revised TP Rs130, based on unchanged 35x FY25 EPS.
By ETMarkets.com | Updated:
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Yes Securities has buy call on Sequent Scientific with a target price of Rs 130. The current market price of Sequent Scientific is Rs 72.3.
Sequent Scientific, incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 1790.93 Crore) operating in Pharmaceuticals sector.
Sequent Scientific key Products/Revenue Segments include Bulk Drugs, Chemicals, Other Operating Revenue, Scrap, Duty Drawback for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 378.18 Crore, up 11.72 % from last quarter Total Income of Rs 338.52 Crore and up 4.55 % from last year same quarter Total Income of Rs 361.72 Crore. Company has reported net profit after tax of Rs -9.78 Crore in latest quarter.
The company’s top management includes Dr.Kamal K Sharma, Mr.Rajaram Narayanan, Mr.Sharat Narasapur, Mr.Gregory John Andrews, Mr.Neeraj Bharadwaj, Dr.Fabian Kausche, Mr.Rahul Mukim, Mr.Milind Sarwate, Dr.(Mrs.)Kausalya Santhanam. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 25 Crore shares outstanding.
Overall, the brokerage reckon, after management guidance, expectation of a quick climb back to comfortable double digit margin have been pushed by a year which would create earnings phase in the interim, wherein EBIDTA growth would not be faster than topline.
Yes Securities cuts FY24 estimate sharply as margin assumption is reduced from ~13% to 10% along with tweaking of below EBIDTA line item. Also bring in FY25 forecast and, while the brokerage still remains positive despite the sharp cuts, reckon recovery is firmly delayed by a year; roll over to FY25 forecast and retain BUY with revised TP Rs130, based on unchanged 35x FY25 EPS.
Promoter/FII Holdings
Promoters held 52.79 per cent stake in the company as of 31-Dec-2022, while FIIs owned 6.25 per cent, DIIs 2.81 per cent.
Sequent Scientific, incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 1790.93 Crore) operating in Pharmaceuticals sector.
Sequent Scientific key Products/Revenue Segments include Bulk Drugs, Chemicals, Other Operating Revenue, Scrap, Duty Drawback for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 378.18 Crore, up 11.72 % from last quarter Total Income of Rs 338.52 Crore and up 4.55 % from last year same quarter Total Income of Rs 361.72 Crore. Company has reported net profit after tax of Rs -9.78 Crore in latest quarter.
The company’s top management includes Dr.Kamal K Sharma, Mr.Rajaram Narayanan, Mr.Sharat Narasapur, Mr.Gregory John Andrews, Mr.Neeraj Bharadwaj, Dr.Fabian Kausche, Mr.Rahul Mukim, Mr.Milind Sarwate, Dr.(Mrs.)Kausalya Santhanam. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 25 Crore shares outstanding.
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Investment RationaleOverall, the brokerage reckon, after management guidance, expectation of a quick climb back to comfortable double digit margin have been pushed by a year which would create earnings phase in the interim, wherein EBIDTA growth would not be faster than topline.
Yes Securities cuts FY24 estimate sharply as margin assumption is reduced from ~13% to 10% along with tweaking of below EBIDTA line item. Also bring in FY25 forecast and, while the brokerage still remains positive despite the sharp cuts, reckon recovery is firmly delayed by a year; roll over to FY25 forecast and retain BUY with revised TP Rs130, based on unchanged 35x FY25 EPS.
Promoter/FII Holdings
Promoters held 52.79 per cent stake in the company as of 31-Dec-2022, while FIIs owned 6.25 per cent, DIIs 2.81 per cent.
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