Strides Shasun: Divestment to focus on profitable businesses; Buy for an upside of 54% | Multibagger |

We believe that sale of domestic formulation business at 2.7x EV/FY17 sales is not only at good multiple but would also enable Strides Shasun (STR) to focus on US and Australia’s regulated market and Africa business in emerging market. The deal also enables STR to reduce financial leverage, thereby improving profitability.

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