This recent D-street debutant has been accorded a buy by Jefferies for a potential 50% upside

Entero Healthcare share that debuted on D-Street in February and has seen its stock fall as against the issue price of Rs 1258 is locked in 20 per cent upper circuit on Friday (April 12, 2024).

Even as the stock has remained range-bound despite the gains in the headline indices, global brokerage Jefferies has initiated a buy on the stock with a target pegged at Rs 1510, an upside of over 50 per cent.

The brokerage held that the company is a fast-growing healthcare products distributor in a large and fragmented market. The brokerage estimates that its wide reach and product offering should lead to 20 per cent orrganic revenue CAGR for FY24-26. Additionally, it opined that the company’s strong tech platform should result in 20 per cent organic revenue CAGR for FY24-26.

Also, Jefferies believes that the company should be a beneficiary of the industry consolidation.

Over FY24-26E, the brokerage estimates 44 per cent revenue CAGR & 8x rise In adjusted profit As economies Of scale kick in.

Entero Healthcare Solutions is an India-based technology-driven and integrated healthcare products distribution company.