Target : 440
Time period: 12 months
We have initiated coverage on Plethico Pharma with a BUY recommendation at the price of Rs 285 and a one year forward target price of Rs 440.
This company is one of the niche players in the green product approach of the consumers i.e. in the Herbals and Nutraceuticals space with 85% of its revenue coming from the same. The company has an edge in the industry as it has no direct peers. It has a diversified product profile reducing the dependency on a single brand. In terms of the markets, USA is the major one for the company backed by its rightly done acquisition, Natrol which is a leading revenue contributor that is about 50% of the total revenues. The company is further expanding its capacity to meet the increasing demand with a new plant in UAE at an investment of Rs 2bn which is expected to be operational shortly. Thus, Plethico is bound to benefit with the range of power brands and the opportunities in the growing segment of Herbals and Nutraceuticals.