Buy Marksans Pharma, target price Rs 124.25: HDFC Securities

economictimes.indiatimes.com:

Marksans Pharma with a target price of Rs 124.25. The current market price of Marksans Pharma is Rs 99.64.

Time period given by analyst is 2-3 quarters when Marksans Pharma price can reach defined target. Marksans Pharma, incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 4524.84 Crore) operating in Pharmaceuticals sector.

Marksans Pharma key Products/Revenue Segments include Pharmaceuticals, Export Incentives and Scrap for the year ending 31-Mar-2022.Financials For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 496.98 Crore, down -.10 % from last quarter Total Income of Rs 497.48 Crore and up 14.67 % from last year same quarter Total Income of Rs 433.39 Crore. Company has reported net profit after tax of Rs 82.71 Crore in latest quarter.Investment Rationale For Q4FY23, the company reported strong operational performance on the back of strong revenue growth and lower other expenses.

EBITDA margin improved 90bps YoY at 18.3%. Going ahead, operating margin is expected to improve led by i) normalisation of operating expenses, ii) balanced focus of both OTC and prescription segments and iii) backward integration (API filings).