Goldman Sachs initiates coverage on Suven Pharma and Piramal Pharma

Goldman Sachs initiates coverage on Suven Pharma and Piramal Pharma

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Goldamn Sachs has initiated coverage of two Indian pharmaceuticals, Suven Pharma and Piramal Pharma, rating the stocks as a 'Buy' for its first rating. The brokerage has cited the reasons behind its review to be that of a strong recovery path and improving profitability over the coming years.

Following this, Suven Pharma shares were trading at Rs 1,070 which reflects a gain of 1.55 percent while Piramal Pharma is trading at Rs 222 which marks a gain of 2.53 percent, as of 12 pm.

For Suven Pharma, Goldman has given a target price of Rs 1,350 per share, predicting a sharp rebound from FY26. According to the brokerage, the recovery will be led by Suven's top-performing drugs and potential new drug approvals in the pipeline. The recent quarter also marked a successful integration of Cohance, Sapala, and NJ Bio — acquisitions that Goldman expects will power Suven's EBITDA to grow at a CAGR of over 20 percent in the near term.

Meanwhile, Piramal Pharma has also caught Goldman’s attention. The brokerage has initiated coverage with a ‘Buy’ rating and a target price of Rs 275 per share, underlining that the company is well-positioned for top-quartile profit growth. Goldman projects that Piramal's Profit Before Tax (PBT) margin will improve sharply, rising from around 3 percent in FY24 to over 16 percent by FY28. This margin expansion, the note says, will be driven by a combination of CDMO (Contract Development and Manufacturing Organisation) business growth, CHG (complex hospital generics) capacity expansion, and a turnaround in its ICH (inhalation and complex hospital) business.

Both stocks are being seen as attractive long-term bets in the pharma space as the sector stabilises after a volatile few year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.