Rubicon Research Gearing Up For Multi-Year Earnings Surge, Says Investec Initiating Bullish Call — Here's Why

Rubicon Research’s bet on specialty generics, nasal therapies and branded formulations is setting up a multi-year earnings surge, believes global brokerage Investec.

The firm, in its latest note, projected a 47% EPS CAGR between FY25 and FY28 for Rubicon Research, and initiated coverage on the stock with a 'buy' call and a target price of Rs 820, indicating a potential upside of over 21%.

Investec says Rubicon’s R&D, capital allocation and acquisition strategy has created a ROI-led growth engine across its business, spanning R&D, M&A, capex and cost control. The company is transforming into a niche and specialty-led pharma player, with increasing contributions from Specialty Generics, nasal products and specialty branded formulations.

Investec highlights Rubicon’s over 25% return on investment, achieved without dependence on a single product, without API manufacturing and despite under-utilised but future-ready plants. The company has built a diversified portfolio across specialty innovation, specialty generics, generic nasals and base generics, supported by efficient manufacturing and disciplined capital deployment.

Rubicon’s base generics business continues to grow through new launches and market share gains, but the key driver is Specialty Generics, where over 10 launches are lined up.
Even though some older products may face price erosion, Investec expects Specialty Generics’ share of gross profits to rise to 45–50%, from 33% in the first half of the fiscal, lifting earnings over the medium term.

Rubicon’s acquisitions in nasal R&D, multiple manufacturing sites, Validus and early-stage pipeline deals are described as well-calibrated across dosage forms and geographies.
As utilisation improves, nasals, specialty generics, base generics and specialty branded products are expected to be monetised with rising profitability through FY28 and beyond.