Shares of Emcure Pharma Ltd. are locked in an upper circuit of 10% on Friday, May 23, after brokerage firm Kotak Institutional Equities increased its price target on the stock post its March quarter results.
Kotak Institutional Equities maintained its "buy" recommendation on the stock and increased its price target to ₹1,625 from ₹1,515 earlier. The revised price target implies a potential upside of 39% from Thursday's closing levels.
Emcure Pharma reported its March quarter during market hours on Thursday, where its revenue went up by 19.5% from last year and nearly 8% when compared to the December quarter.
Emcure's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 29.5% from last year and 13.5% from the previous quarter. Margins expanded 150 basis points from last year to 19%, which is also 90 basis points higher from the December quarter.
Kotak wrote in its note that Emcure is one of the few Indian pharma majors with no direct US generics exposure, thereby lending greater earnings stability.
Only three analysts have coverage on Emcure Pharma, with two having a "buy" recommendation, while one has a "hold" rating.
Shares of Emcure Pharma are locked in a 10% upper circuit at ₹1,284.4. The stock has risen 27% so far from its IPO price of ₹1,008. The stock had gained 9% on Thursday as well after the results were announced and has seen gains in four out of the five trading sessions this week.
Kotak Institutional Equities maintained its "buy" recommendation on the stock and increased its price target to ₹1,625 from ₹1,515 earlier. The revised price target implies a potential upside of 39% from Thursday's closing levels.
Emcure Pharma reported its March quarter during market hours on Thursday, where its revenue went up by 19.5% from last year and nearly 8% when compared to the December quarter.
Emcure's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 29.5% from last year and 13.5% from the previous quarter. Margins expanded 150 basis points from last year to 19%, which is also 90 basis points higher from the December quarter.
Kotak wrote in its note that Emcure is one of the few Indian pharma majors with no direct US generics exposure, thereby lending greater earnings stability.
Only three analysts have coverage on Emcure Pharma, with two having a "buy" recommendation, while one has a "hold" rating.
Shares of Emcure Pharma are locked in a 10% upper circuit at ₹1,284.4. The stock has risen 27% so far from its IPO price of ₹1,008. The stock had gained 9% on Thursday as well after the results were announced and has seen gains in four out of the five trading sessions this week.
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