Jefferies has initiated coverage on Emcure Pharma with a ‘Buy’ rating and set a target price of Rs 1,600 per share, indicating a 15% upside from the current market price of Rs 1,385. The brokerage firm highlights Emcure Pharma’s strong capabilities in developing complex molecules, which sets it apart in the competitive pharmaceutical landscape.
A key differentiator for Emcure Pharma, according to Jefferies, is its lack of exposure to the volatile U.S. market, allowing the company to focus on high-growth regions like India and Canada. The firm expects operational leverage and ongoing debt reduction efforts to further bolster the company’s financial health.
Jefferies projects an 11% compound annual growth rate (CAGR) in revenue over FY24-27, driven by market share gains in India and new product launches in export markets. Additionally, the firm anticipates a robust profit CAGR of 29% during the same period, underscoring Emcure Pharma’s potential for significant earnings growth.
With these factors in mind, Jefferies views the stock as attractively valued at current levels, making it a compelling investment opportunity.
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