Square Pharmaceuticals (SQUARE BD) Bangladesh
Healthcare
Market leader in the Bangladesh Pharma industry with ~17% market share. It has RoIC of ~40%, net margins above 30% and net cash/M.Cap of 25%. Trades on a forward PE of 10.7x. Square had seen a major derating in its multiple over the last 5 years. However, there has been a clear turnaround with double digit top line growth from 2020-21, which is continuing with latest quarter revenue and EPS growth of 15% and 21% respectively. With the onset of Omicron, Edge Research are expecting a further boost to revenue. Meanwhile, the company has also resolved the management gaps and removed all loans to sister companies. Square looks poised for a multi-year rally.
Edition: 128
- 04 February, 2022