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Strides Pharma has undergone many changes in its business model and geographical focus. The management has an excellent track record for building businesses and encashing through strategic sale when attractive. In its present form, the company is a niche US generics player with presence in products where it has a technological or cost advantage and also has a thriving emerging markets generics business. We expect the US generics business to eventually scale up well but for the present price erosion has severely impacted performance. We have a neutral weight rating despite weak near term performance due to management calibre and opportunities which the management is pursuing for the long term including recent acquisitions – 27-08-2021 Price: 603.20 Rating: Neutral Weight Recommendation: Hold

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