Company Overview
Hester Biosciences is a 25 year old company specialized in the manufacturing of advanced veterinary vaccines. It is the second largest poultry vaccine manufacturer in India. The company operates one of the largest single location animal manufacturing units in Asia. Its primary manufacturing facility is located in Merda-Arday, in Gujarat. The company has a large product basket of 39 live and inactivated vaccines. In 2008, the company changed its name to Hester Biosciences from Hester Pharmaceuticals. Hester Biosciences has two subsidiary companies, Hester Biosciences Mauritius (wholly owned) and Hester Biosciences Nepal Private Ltd (65% holding). The facility in Nepal is a 100% export oriented unit, aimed at expanding reach to the markets of Nigeria, Sudan, Pakistan, Iran, Ethiopia and Middle East.
This company initially started with Poultry vaccines, and then entered in large animal’s vaccine segment based on its growth plan. Beginning this financial year, Hester has launched 3 additional divisions - Large Animal Biologicals, Large animal healthcare and Poultry healthcare, besides its existing Poultry Biologicals division. With the launch of these divisions, Hester expects a better penetration in the domestic as well as in the international veterinary market.
Financials
Total revenue of the company rose from 16 crores to 23 crores and company managed to post decent PAT with good margin in hand. with the QOQ EPS at 5.11 Rs. stock price have reasonable steam left. We can expect here 20% return over 12 months period of time. Hence we initiate a buy call with the price target of 240 at CMP 199.
Hester Biosciences is a 25 year old company specialized in the manufacturing of advanced veterinary vaccines. It is the second largest poultry vaccine manufacturer in India. The company operates one of the largest single location animal manufacturing units in Asia. Its primary manufacturing facility is located in Merda-Arday, in Gujarat. The company has a large product basket of 39 live and inactivated vaccines. In 2008, the company changed its name to Hester Biosciences from Hester Pharmaceuticals. Hester Biosciences has two subsidiary companies, Hester Biosciences Mauritius (wholly owned) and Hester Biosciences Nepal Private Ltd (65% holding). The facility in Nepal is a 100% export oriented unit, aimed at expanding reach to the markets of Nigeria, Sudan, Pakistan, Iran, Ethiopia and Middle East.
This company initially started with Poultry vaccines, and then entered in large animal’s vaccine segment based on its growth plan. Beginning this financial year, Hester has launched 3 additional divisions - Large Animal Biologicals, Large animal healthcare and Poultry healthcare, besides its existing Poultry Biologicals division. With the launch of these divisions, Hester expects a better penetration in the domestic as well as in the international veterinary market.
Financials
Total revenue of the company rose from 16 crores to 23 crores and company managed to post decent PAT with good margin in hand. with the QOQ EPS at 5.11 Rs. stock price have reasonable steam left. We can expect here 20% return over 12 months period of time. Hence we initiate a buy call with the price target of 240 at CMP 199.
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