Buy Senores Pharma; target of Rs 1010: Choice Equity Broking

Choice Equity Broking's report on Senores Pharma

SENORES remains in a high-growth phase, supported by a robust launch pipeline across regions and a continued ramp-up in injectables. Management expects ~50% revenue growth in FY26E and a 25–30% CAGR over FY25–28E, with ~100% PAT growth, with EBITDA margin in the range of 24-26%. We believe this will be driven by operating leverage from the scale-up of the new unit at its US facility, launches in high-margin CGT products and backward-integration benefits as the API facility becomes operational.

Outlook

We have revised our estimates upward by 2.6%/3.9% for FY26E/FY27E and value the stock at 30x the average of FY27–28E EPS. This results in a revised TP of INR 1,010 (vs. INR 960 earlier). The valuation is further supported by a PEG of 0.66x. We maintain our BUY rating.

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