Emcure Pharmaceuticals, backed by Namita Thapar, has achieved its first ‘buy’ rating since its market debut over a month ago. Jefferies has set a target price of ₹1,600 for the stock, suggesting a potential upside of 15% from Friday’s closing price.
This optimistic outlook from Jefferies follows a significant 40% rise in the stock from its issue price of ₹1,008. Fueled by the ‘buy’ recommendation, Emcure’s shares surged by 5% to a record high of ₹1,455.20 on the NSE.
Jefferies praised Emcure for its expertise in developing complex molecules and its strategic advantage due to limited exposure to the volatile US market. The company is also experiencing strong growth in India and Canada, with operational efficiencies and debt reduction measures anticipated to enhance its performance. Jefferies projects an annual revenue growth of 11% for Emcure, supported by increased market share in India and new export launches, with profits expected to grow at a compound annual rate of 29% from FY24 to FY27.
Emcure Pharma specializes in the development, manufacturing, and global marketing of pharmaceutical products across various therapeutic areas. Its extensive portfolio includes orals, injectables, and biotherapeutics, with a presence in over 70 countries.
The company operates 13 manufacturing facilities in India, producing a wide range of dosage forms, including oral solids, liquids, and injectables—both liposomal and lyophilized. In FY24, Emcure reported an 11% increase in revenue, reaching ₹6,715 crore, up from ₹6,031 crore the previous year. However, profits declined by over 6% to ₹527 crore, compared to ₹561 crore in the previous fiscal year.
