Buy Akums Drugs and Pharmaceuticals; target of Rs 600: ICICI Direct

ICICI Direct is bullish on Akums Drugs and Pharmaceuticals recommended buy rating on the stock with a target price of Rs 600 in its research report dated December 22, 2025.

Broker Research

December 23, 2025 / 11:27 IST

Buy

ICICI Direct's research report on Akums Drugs and Pharmaceuticals

Slump in price of key APIs has exerted pressure on growth in Akums CDMO segment for the past several quarters, we believe this trend is now starting to reverse as API prices are now stabilizing. CDMO vertical is expected to grow in single digits in H2FY26. Recent export contracts for Zambia (USD 25mn revenue from FY27E) and Europe (Euro 35mn revenue from FY28E) will ensure that the revenues grow at ~14% from FY26-28E and will also boost margins. We raise FY27/28E EPS by ~4%/20%, respectively, factoring in better margins.

Outlook

The stock trades at attractive P/BV of 1.9x/1.6x FY27/28E, considering its dominance in the Indian pharma manufacturing space. Retain BUY with higher TP of INR 600 (INR 565 previously).

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