Sai Life Sciences shares fell over 2% after Jefferies initiated coverage with a ‘Hold’ rating, citing limited upside potential. The brokerage set a target price of ₹730, indicating a narrow gain from the current market price of ₹700.
Jefferies acknowledged Sai Life’s strong position as an innovator-focused contract development and manufacturing organization (CDMO), highlighting its differentiated business model, favorable industry dynamics, and a promising molecule pipeline, including three potential blockbuster drugs. The company is expected to witness a 15% revenue CAGR and a 29% EBITDA CAGR between FY25-27.
Despite these positives, Jefferies flagged concerns over valuation, noting that Sai Life is trading at 32x/26x FY26/27 pre-Ind AS EV/EBITDA—30% higher than its industry peers. The brokerage believes that without immediate growth triggers, the stock’s near-term upside is restricted, justifying its ‘Hold’ rating.
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