Jefferies has said that India’s contract research, development and manufacturing organisation (CRDMO) sector is at an inflection point, evolving from being seen as quasi-chemical firms to strategic innovation partners. The brokerage believes that the China+1 diversification trend is a structural driver that could support high-teens revenue compound annual growth for the next decade, underpinned by a healthy pipeline across leading players.
Jefferies initiated coverage on Cohance with a buy call and a target price of ₹1,150, citing its strong positioning in custom manufacturing. It also upgraded Divi’s Laboratories to buy with a target of ₹7,150, while naming Sai Life Sciences as its top pick with a target of ₹1,100. In addition, the brokerage reiterated a buy on Piramal Pharma with a target of ₹260, highlighting strong growth prospects across contract manufacturing services.
The brokerage said the evolution of Indian CRDMOs reflects their ability to move up the value chain, with global clients increasingly relying on them as strategic partners. It added that the sector’s growth runway looks compelling given strong pipelines, global cost competitiveness, and regulatory credibility.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
