Namita Thapar-backed Emcure Pharmaceuticals bagged its first 'buy' tag since its market debut more than a month ago. Global brokerage Jefferies has assigned a price target of Rs 1,600, which implies a potential upside of 15 percent from Friday's closing price.
This bullishness from Jefferies comes after the stock has surged around 40 percent from its issue price of Rs 1,008.
Buoyed by the its first 'buy' rating, shares of Emcure Pharma soared 5 percent to a record high of Rs 1,455.20 apiece on the NSE.
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Jefferies highlighted the company's strong expertise in developing complex molecules, noting its distinct advantage due to minimal exposure to the volatile US market.
Emcure is also witnessing robust growth in India and Canada, with operational leverage and debt reduction strategies expected to further bolster its performance. Factoring that in, Jefferies forecasts an annual revenue growth of 11 percent for the drugmaker, driven by increased market share in India and new export launches, with profits projected to grow at a compound annual rate of 29 percent from FY24 to FY27.
Emcure Pharma specialises in the development, manufacturing, and global marketing of pharmaceutical products across various therapeutic areas. Its diverse product portfolio includes orals, injectables, and biotherapeutics, extending its reach to over 70 countries worldwide.
The company operates 13 manufacturing facilities across India, producing a variety of dosage forms, including oral solids, oral liquids, and injectables—both liposomal and lyophilized.
In FY24, Emcure recorded a revenue growth of 11 percent, rising to Rs 6,715 crore, up from Rs 6,031 crore in the previous fiscal. However, the company's profit declined a little over 6 percent to Rs 527 crore in FY24, down from Rs 561 crore in the previous year.
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