Update shared on 15 Nov 2025
Fair value Decreased 18%Narrative Update: Hikal Analyst Price Target Adjustment
Analysts have decreased their fair value estimate for Hikal from ₹390 to ₹320 due to revised expectations for revenue decline and lower profit margins.
What's in the News
- The United States FDA issued a warning letter to Hikal's drug manufacturing facility in Karnataka following an inspection in February 2025. The letter highlighted significant deviations from Current Good Manufacturing Practices and noted inadequate investigation of recurring metal contamination in APIs (Regulatory Authority – Enforcement Actions).
- At the 37th Annual General Meeting on September 23, 2025, shareholders approved a final dividend, bringing the total dividend for FY 2024-25 to INR 1.40 per equity share (Dividend Increases).
- The Board of Directors scheduled a meeting on November 13, 2025, to approve and record the unaudited financial results for the second quarter and half year ended September 30, 2025 (Board Meeting).
Valuation Changes
- Consensus Analyst Price Target has fallen from ₹390 to ₹320, reflecting a significant downward revision in fair value estimates.
- Discount Rate has risen slightly, moving from 12.73% to 12.76%.
- Revenue Growth forecasts have shifted from a projected increase of 8.98% to an expected decline of -1.91%.
- Net Profit Margin forecasts have decreased from 10.13% to 5.97%.
- Future P/E Ratio has increased from 28.35x to 54.14x, which suggests higher valuation relative to earnings despite the revised outlook.
Disclaimer
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