Buy Supriya Lifescience; target of Rs 1030: Choice Institutional Equities

Choice Institutional Equities's report on Supriya Lifescience

We visited SUPRIYA’s Block E at its Lote facility (in Ratnagiri, Maharashtra) and also met the senior members of the management - Dr. Saloni Wagh (MD) and Mr. Krishna Raghunathan (CFO). Block E houses large-volume, multipurpose synthesis equipment and supports complex/controlled-substance handling. The unit is compliant with global cGMP standards and has significant liquid-filling capabilities. Management highlighted strong progress in backward integration (including KSM development), semi-automated processes that enhance data integrity and readiness for customer and FDA audits. We believe growth will be driven by new launches (3–4 in H2FY26) and CMO opportunities. Ambernath R&D ramp-up will strengthen the portfolio, while improved additional land acquisition and capacity expansion position the company for sustained 20%+ growth. Additionally, the shift towards high margin CDMO and GLP-1 intermediates will also drive margin expansion.

Outlook

We continue to expect to see a CAGR of 21.6%/18.9%/19.4% over FY25-28E and maintain our BUY rating with an unchanged TP of INR 1,030.

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