Kotak Securities has upgraded Emcure Pharmaceuticals to “Buy” from “Add,” raising its target price to ₹1,680. The brokerage sees promising growth potential, fueled by a positive outlook for the second half of FY25 and robust medium-term prospects. Emcure’s growth is expected to be driven by healthy organic performance, bolstered by its in-licensing deal with Sanofi and the consolidation of its acquisition, Mantra. The resolution of significant legal challenges is also expected to contribute to improved operational efficiency.
Additionally, rising PCPM (per capita per month) metrics, higher utilization rates, and lower interest costs are anticipated to drive a strong 29% compound annual growth rate (CAGR) in earnings per share (EPS). Emcure is strategically positioned to capitalize on market opportunities, making it an attractive investment option in the pharmaceutical sector.
