KR Choksey's research report on Supriya Lifescience
Supriya Lifescience revenue slightly missed (-1.2%) our estimate. However, EBITDA and PAT beat our estimates significantly due to lowerthan-expected operating expenses, better product mix and better geographical mix. We increase the PE multiple to 29.0x (previously: 25.5x) as we believe growth will be driven by expansion into regulated markets, a focus on high-margin niche markets, increase in the production capacity and diversification into CDMO (contract development and manufacturing organization) business.
Outlook
We maintain FY26E EPS estimates of INR 22.2, showing our confidence in the backward integration strategy which provides better cost control, and is consistent in strong operational performance. Therefore, we arrive at a target price of INR 644/share (previously: INR 578/share) and maintain “BUY” rating.
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