The brokerage has an “overweight” rating on Dr. Agarwal’s with a price target of ₹502 per share. This is the first analyst rating the stock has received after its listing last month.
Morgan Stanley said India’s eyecare industry has a high total addressable market, high barriers to entry and high returns, as it is asset-light.
As the segment’s leading brand and backed by a doctor-promoter team, Dr. Agarwal’s Healthcare appears well-positioned to outperform its peers, the brokerage said.
The company’s revenue is 1.7 times the level of its closest peer, Morgan Stanley added.
Morgan Stanley expects Dr. Agarwal’s revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow at a Compounded Annual Growth Rate (CAGR) of 19% each between financial year 2025 and 2027.
Shares of Dr. Agarwal’s Health Care Ltd made a sluggish debut on the bourses last month, listing at ₹396.90 against the IPO issue price of ₹402 on the BSE. This reflected a discount of around 1.2% from the issue price.
Meanwhile, on the NSE, Dr. Agarwal’s Health Care shares listed at ₹402. The listing price was at par with the issue price of the IPO.
Shares of Dr Agarwal’s Health Care Ltd ended the previous trade session 1.68% higher at ₹427.15 apiece.
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