Kotak Institutional Equities has initiated coverage on Emcure Pharmaceuticals, assigning an ‘Add’ rating with a target price of ₹1,655 per share. Emcure stands out among Indian pharma majors due to its lack of direct exposure to the US generics market, offering greater earnings stability compared to peers.
The company has built a diverse and complex portfolio across India, Canada, Europe, and emerging markets. Kotak expects Emcure to report a 14% sales CAGR over FY2024-27, driven by increased productivity following the 20%+ expansion of its field force since FY22.
Additionally, higher capacity utilization of its new facilities is expected to fuel robust growth, with EBITDA CAGR of 19% and EPS CAGR of 30% projected over the same period.
Emcure’s current market price (CPM) is ₹1,497.40, indicating potential upside based on the firm’s growth outlook and target price.
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