Key risks to our investment thesis and TP include:      

Upside risks      

– Greater-than-expected market share gains could drive stronger volumes and sales growth which in turn could translate into stronger earnings growth as operating leverage benefits kick-in.      

– Wasfaty adoption can drive stronger traffic into their stores and boost LFL sales.      

– More aggressive expansion into primary healthcare centers could yield similar returns and drive stronger-than-expected growth in the long-term.      

Downside risks      

– Weaker consumer sentiment and spending could erode discretionary spend on their non-drugs sales.      

– Increased competition in the sector from non-pharma players, especially in beauty products, consumer goods and non-medicine segment.      

– Pricing pressure could weigh on margins and require further OpEx and marketing spend.