Sai Lifesciences Gets Target Price Hike From Morgan Stanley As Growth Outpaces Industry

Morgan Stanley hiked the target price of Sai Lifesciences, noting its higher-than-industry growth. The brokerage maintained an 'overweight' rating and hiked the target price to Rs 911 apiece from Rs 865. The current target price implies a 20.18% upside from Wednesday's closing price.

The CRDMO model of Sai Lifesciences is expected to enable the company to outpace the industry. The company said it had increased its capital expenditure sharply, implying confidence in future growth, according to the brokerage.

CRDMO stands for contract research, development, and manufacturing organisation.

Sai Lifesciences was able to grow its contract research business 26% year-on-year in financial year 2025 even as funding in the biotechnology environment softened. The discovery segment contributed 37% to the topline. In the contract manufacturing segment, Sai Lifesciences has more than 90 projects in the pipeline, Morgan Stanley said.

With opportunities for high revenue, Sai Lifesciences is hiking investments in new capacities and modalities. Capital expenditure has been hiked from Rs 500 crore to Rs 700 crore in financial year 2026, Morgan Stanley said.