Neutral Indegene; target of Rs 550: Motilal Oswal

Neutral

Motilal Oswal's research report on Indegene

Indegene’s 3QFY26 USD revenue rose 15.1% QoQ, aided by the BioPharm acquisition, while organic USD revenue growth stood at 4% QoQ (below our estimate). Consequently, EBITDA margin contracted 60bp QoQ to 16.9% (below our estimate of 18.5%) and EBIT margin stood at 12.7% on account of the acquisition-related impact. PAT was up 0.9% QoQ and down 6.5% YoY at INR1.0b (below our estimate of INR1.2b), as operating profit was low due to one-time expenses and higher non-cash amortization.

Outlook

We expect Indegene to deliver a CAGR of 18%/21%/18% in revenue/EBIT/PAT over FY25-28. We reiterate our Neutral rating with a TP of INR550 (based on 20x FY28E EPS).

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