Suven Pharma has turned ex-bonus from September 25, 2020 pursuant to the board approval granted for the issue of bonus shares in its meeting held on September 16, 2020. The record date for the same has been fixed as September 28, 2020. The board has recommended the issue of bonus shares in proportion of one bonus share (face value of Rs. 1 each) for every equity share held (i.e. 1:1). Consequently, the share price has changed to Rs. 369/share from Rs. 738/share. Accordingly, our target price has also been revised to Rs. 385/share from Rs. 770/share earlier. After the recent run up, the stock offers limited upside from here on. We change the recommendation from BUY to HOLD. Our target price is based on 22x FY22E EPS (revised) of Rs. 17.5. We will revisit the target price for a possible change in the next update.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_SuvenPharma_QC_Sep20.pdf