Buy Thyrocare Technologies; target of Rs 620: ICICI Securities

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • Thyrocare Technologies' pathology segment is expected to drive growth, with a strong network of 12,911 franchisees and a rising contribution from specialized tests, which currently contribute ~4% of pathology revenue.
  • The company's foray into the OTC segment, with the launch of a pregnancy test kit, is expected to act as a channel for new customer acquisition.
  • Thyrocare's divestment of its imaging arm, Nueclear Healthcare Ltd., is expected to be completed by end-Nov'26, and the company plans to focus on its pathology business.
  • The company's management has raised its FY27 revenue growth guidance to >20% and expects EBITDA margins between 31-31.5%.

Thesis Validation Checklist

  • Investors should watch for Thyrocare's ability to sustain its growth momentum in the pathology segment, driven by network addition and specialized tests.
  • The success of the company's OTC segment, particularly the pregnancy test kit, will be crucial in driving new customer acquisition.
  • The completion of the divestment of the imaging arm and the company's focus on its pathology business will be key to its future growth.
  • Thyrocare's ability to maintain its EBITDA margins and achieve its revenue growth guidance will be important in validating the investment thesis.