Hold Suven Pharmaceuticals: target of Rs 530: ICICI Direct

ICICI Direct's research report on Suven Pharmaceuticals

Dedicated CRAMs supports the global life sciences industry and fine chemical majors in their NCE development endeavours. Its services include custom synthesis, process R&D, scale-up & contract manufacturing. In FY22, CRAMs Pharma vertical contributed 59% of sales. Besides CRAMs Pharma, Suven has also has developed & supplied intermediates/technical for specialty chemicals CRAMs, which accounted for 35% of sales • Suven is currently on a three pronged investment plan, 1) relocating R&D centre, 2) replacement and upgradation of blocks at Suryapet facility and 3) additional new block in line with FDA regulations at Pashamylaram facility.

Outlook

We maintain HOLD as strong CRAMs franchisee notwithstanding, expansion in formulations may bring its own set of challenges. Valued at Rs 530 i.e. 30x P/E on FY24E EPS of Rs 17.6.

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