Poultry vaccine manufacturer’s stock jumps 12% after announcing Q1FY26 results!

On Friday, shares of Hester Biosciences Limited jumped 12 per cent to Rs 2,183.15 per share from its previous closing of Rs 1,949.95 per share. The shares of the company saw a spurt in volume by more than 55 times. The stock has a 52-week high of Rs 3,250 per share and a 52-week low of Rs 1,246.75 per share.

Hester Biosciences announced mixed, unaudited financial results for Q1FY26. On a standalone basis, divisional product sales were down by 14 per cent and profit decreased by 7 per cent. This was largely attributed to a 33 per cent decline in sales within the Animal Healthcare Division, primarily due to delayed government immunisation programs for PPR and Lumpy Skin Disease, which are expected to commence in subsequent quarters. Despite this temporary setback, the division maintained stable demand for therapeutic products and introduced alternate offerings to mitigate past regulatory challenges. Conversely, the Poultry Healthcare Division recorded a 2 per cent growth, driven by strong demand for key vaccines like Newcastle Disease and Marek's Disease, with new feed supplements and disinfectants also gaining market acceptance.

On a consolidated basis, Hester's performance showed significant improvement, with divisional product sales up by 2 per cent to Rs 84.09 crore and net profit surging by a remarkable 131 per cent. This consolidated growth was largely propelled by a significant turnaround in Hester Africa's performance, which delivered a net profit of Rs 5.50 crore, a substantial recovery from a loss of Rs 5 crore in Q1FY25, supported by improved commercial execution. Hester Nepal also contributed positively with a net profit of Rs 1.92 crore. The company expects future growth from rectified external factors, internal structural changes in sales, marketing and R&D and continued focus on launching new products like the Avian Influenza vaccine, product diversification in Animal Healthcare and leveraging international infrastructure for sustainable revenue and margin scaling.

About the Company

Hester Biosciences Limited, established in 1997, is a prominent Indian animal health company specialising in vaccines and health products. It operates through two key divisions: Poultry Healthcare and Animal Healthcare, which include ruminant and pet health segments. Notably, Hester is the world's largest manufacturer and supplier of the PPR vaccine, commanding approximately 75 per cent of the global market and holds over 70% market share for the Goat Pox vaccine in India, vital for immunising cattle against Lumpy Skin disease. As India's second-largest poultry vaccine manufacturer with roughly 35% market share, Hester leverages diverse vaccine platforms, including Chick Embryo Origin, Continuous Cell line, Tissue Culture and Fermentation-based live and inactivated vaccines, all while championing the "ONE HEALTH" vision to enhance human well-being through improved animal health.

The company has a market cap of Rs 1,857 crore and has been maintaining a healthy dividend payout of 25 per cent. The stock is up by 87 per cent from its 52-week low of Rs 1,246.75 per share. The shares of the company have a PE of 50x, an ROE of 10 per cent and an ROCE of 10 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.