Strides Pharma Q2 Results Review - Strong Recovery In U.S. Sales: ICICI Securities

ICICI Securities Report

Strides Pharma Science Ltd.’s Q2 FY23 performance fell short of our estimates due to underperformance in regulated markets other than the U.S., which reported strong recovery with a 30% QoQ rise to $60 million.

Revenues grew 24.3% YoY to Rs 9.0 billion (our estimate: Rs 9.4 billion) led by the strong U.S. growth. Institutional business remained soft with closure of contracts (renewals are to begin in FY24).

Higher U..S sales drove operating leverage, supporting the 400 bps QoQ Ebitda margin improvement to 9.4%.

Strides Pharma has reiterated its target of achieving U.S. sales exit run-rate of $250 million in FY23, to be driven by new product launches and incremental sales from the Endo Pharma portfolio.

Growth momentum in the U.S. business and reasonable valuations make the stock attractive.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.