Fundamental Analysis

THYROCARE TECHNOLOGIES 

Ticker : 539871
BUY: Rs 766.70
Target: Rs 850

Thyrocare Technologies is a healthcare service provider that operates with a centralised processing laboratory (CPL) in Mumbai. On a consolidated quarterly front, its net sales declined by 48.72 per cent in Q1FY21 to Rs 56.27 crore from Rs 109.73 crore in Q1FY20. The operating profit of the company was reported at Rs 9.68 crore in Q1FY21, down by 79.82 per cent from Rs 47.97 crore in Q1FY20. Net profit saw a decline of 98.2 per cent to Rs 0.49 crore in Q1FY21 from Rs 27.29 crore in Q1FY20. The performance of the company has been adversely impacted by the COVID-19 pandemic. In line with this, the company has been authorised by Indian Council of Medical Research (ICMR) to perform COVID-19 tests using real-time polymerase chain reaction (RT-PCR) technology. Consequently, the company has processed more than 1,45,000 COVID-19 tests until now. Faster recovery in preventive care business and incremental tie-ups by Thyrocare with standalone labs for sample processing are the key positives of the company. Owing to these prospects of recovery, we recommend a BUY.