Fundamental Analysis

FDC LIMITED 

Ticker : 531599  
BUY: Rs 250.15
Target: Rs 280

FDC Limited is a pharmaceutical company engaged in the manufacturing of specialised formulations as well as oral rehydration salts (ORS). Its facilities are located at Roha, Waluj and Sinnar in Maharashtra, Verna in Goa and Baddi in Himachal Pradesh. On a consolidated quarterly front, the company reported net sales of Rs 321.22 crore in Q3FY20, up by 25.39 per cent from Rs 256.17 crore in Q3FY19. Operating profit saw an impressive growth of 64.39 per cent to Rs 115.85 crore in Q3FY20 from Rs 70.48 crore in the same period for the previous fiscal year. Similarly, net profit expanded by 61.13 per cent and was recorded at Rs 74.25 crore in Q3FY20 as compared to Rs 46.08 crore in Q3FY19. The pharma and healthcare sector is better placed to navigate Coronavirus outbreak by managing key medicine supplies as being under the essential commodities segment, its demand remains strong. Thus, we recommend a BUY.