India's Entero Healthcare jumps as Investec initiates with 'buy'

Entero Healthcare Solutions

23/04/2024 07:12

** Shares of Entero Healthcare Ltd  ENTE.NS  up 5% at
1,201.10 rupees
    ** Investec begins coverage of healthcare products
distributor with "buy" rating, PT of 1,590 rupees
    ** Brokerage says ENTE's "attractive" acquisitions power
inorganic growth, complement organic growth and are
"margin-accretive, creating shareholders' value from day 1"
    ** Sees EBITDA margin growing to 4.5% by FY26 from 3% in
FY24 as it builds scale and reduces dependence on top customer
Apollo group
    ** ENTE trades at ~30% discount to pharmacy retailer Medplus
Health Services Ltd  MEDP.NS  due to business-to-business model
but could narrow the gap on higher growth in long-term and
better returns - Investec
    ** Earlier this month, Jefferies also initiated stock with
"buy"
    ** Around 166,000 shares traded, 1.2x 30-day avg volume
    ** Stock down 2.3% since listing in mid-Feb, while MEDP has
gained ~1.5% in the same period


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))