Entero Healthcare share price jumps 20% as Jefferies initiates coverage with Buy call

Shares of Entero Healthcare Solutions witnessed a remarkable surge of 20% during intraday trade on Friday after global brokerage firm Jefferies initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 1,510 per share.

In its initiation report, Jefferies highlighted that Entero Healthcare is a fast-growing healthcare products distributor operating in a large and fragmented market. The brokerage firm believes that the company’s wide reach and diverse product offering should lead to an organic revenue growth of around 20% compound annual growth rate (CAGR) for the financial years 2024-2026.

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Jefferies also noted that Entero Healthcare’s strong technology platform, which enables efficient distribution and logistics operations, should further propel its organic revenue growth to around 20% CAGR for the same period.

Jefferies estimates that Entero Healthcare will witness a remarkable 44% revenue CAGR and an 8-fold increase in adjusted profits for the financial years 2024-2026, driven by the economies of scale kicking in.

Reacting to the positive initiation report, Entero Healthcare’s shares surged as much as 20% to an intraday high of Rs 1,202.20 on NSE.