HESTER BIOSCIENCES

Flash News Investment - - RECOMMENDATIONS -

The coun­try’s sec­ond largest an­i­mal vac­cine man­u­fac­turer with 35% mar­ket share de­rives 88% of its rev­enue from poul­try, while 12% comes from large an­i­mals. Its rev­enue also in­cludes medicines, feed sup­ple­ments and dis­in­fec­tants for an­i­mals. Fi­nan­cially, the com­pany posted ex­u­ber­ant 22% and 29% rev­enue and PAT growth, re­spec­tively, in FY17. In Q2FY18, it has in­vested USD 3 mil­lion in its African sub­sidiary to set up vac­cine plant to cater to the de­mand from en­tire African con­ti­nent, which im­ports 80% plus vac­cines cur­rently. Go­ing for­ward, the com­pany is ex­pect­ing ten­ders for its PPR vac­cine in the Dec. 2017 or March 2018 quar­ter and also ten­ders for Bru­cella vac­cine. The com­pany main­tains its 20% growth guid­ance for FY18 amid ex­pected 100% growth in ex­ports as against FY17. Its ex­ports ac­count for 12% of rev­enues. The com­pany is also mulling fur­ther fo­cus on ex­ports of large an­i­mal vac­cine. With this, we rec­om­mend BUY in the scrip.

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