Shares of Cohance Lifesciences came under sharp pressure on September 18, tumbling 6 percent to Rs 909 apiece after a large block deal hit the exchanges. Around 3.39 crore shares, translating to 8.9 percent equity worth Rs 3,073 crore, changed hands in early trade.
While the identity of sellers was not confirmed, reports on CNBC-TV18 suggested that Jusmiral Holdings was looking to offload up to 8.9 percent stake in the company. The reported deal is also accompanied by a 210-day lock-up on further share sales.
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Despite the knee-jerk reaction, global brokerage Jefferies has an optimistic view on Cohance and the broader Indian CRDMO (Contract Research, Development, and Manufacturing Organization) sector. The brokerage recently initiated coverage with a “Buy” rating and a price target of Rs 1,150, citing structural tailwinds.
“India’s CRDMO industry is transitioning from being a traditional chemical manufacturer to becoming a strategic partner for global innovators. This shift, driven by enhanced capabilities, geographic diversification, and the China+1 strategy, could deliver a high-teen revenue CAGR over the next decade,” Jefferies said.
In Q1FY26, Cohance reported an adjusted net profit of Rs 62.9 crore, down 24.8 percent year-on-year from Rs 83.5 crore in Q1FY25. Revenue from operations, however, rose 12.5 percent YoY to Rs 549.3 crore, supported by growth across segments.
Material margin improved 20.1 percent YoY to Rs 401.2 crore, with margin percentage expanding to 73 percent from 68.4 percent, aided by a favourable business mix and contributions from recent acquisitions.
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