Buy Strides Shasun, target Rs 990: ICICI Securities

ICICI Securities has a buy call on Strides Shasun Ltd. with a target price of Rs 990. The current market price of Strides Shasun Ltd. is Rs 525.3 Time period given by analyst is year when Strides Shasun Ltd. price can reach defined target. . Strides Shasun Ltd., incorporated in the year 1990, is a mid-cap company with a market cap of Rs 4760.87 crore.

Investment rationale by ICICI Securities
Outlook: The financials details and structure of this transaction have not been disclosed yet. This deal would be subject to approvals from various regulatoryauthorities including Competition Commission. We have not factored in this transaction in our estimates. Overall, we expect Strides to register 67.2% adjustedPAT CAGR over FY18-20 driven by 11.2% revenue CAGR and 510bps EBITDA margin expansion.

Valuations and risks: We maintain BUY with target price of Rs990/share. Key downside risks are: regulatory