Brokerages have maintained mixed views on Cohance Lifesciences following its second-quarter results for fiscal 2027, with Goldman Sachs retaining its Buy rating, Jefferies maintaining Underperform, and JPMorgan sticking to Neutral. While Jefferies raised its target to Rs 375 from Rs 350, Goldman Sachs maintained its target price at Rs 525, but JPMorgan cut its target to Rs 440 from Rs 490. Brokerages expect a recovery in the second half of fiscal 2027, although concerns over margins, earnings growth, and execution remain.
Cohance Lifesciences Q2: Key Highlights (Cons)
- Revenue declined 14.2% year-on-year to Rs 476.7 crore from Rs 555.6 crore.
- Ebitda fell 70.7% to Rs 35.5 crore from Rs 121 crore.
- Ebitda margin contracted to 7.4% from 21.8% a year ago.
- Net profit declined 79.5% to Rs 15.2 crore from Rs 74.1 crore.
What Brokerages Say
Goldman Sachs: Retain Buy, Target Price Rs 525
- Goldman Sachs has retained its Buy rating and maintained its target price at Rs 525.
- Q2 revenue was 3% below the brokerage's estimates.
- The quarter marked a sequential recovery from the first-quarter trough.
- Ebitda was 26% below estimates, as lower agrochemical contributions weighed on margins.
- The brokerage has cut its fiscal 2027–29 EPS estimates by up to 31%.
Jefferies: Maintain Underperform, Target Price Rs 375
- Jefferies has maintained its Underperform rating but raised its target price to Rs 375 from Rs 350.
- Management expects a recovery in the second half of fiscal 2027, supported by CDMO reload orders and new programmes.
- Agrochemical and specialty chemical revenue is expected to decline in fiscal 2027 amid pricing pressures.
- The brokerage has cut its fiscal 2027–29 EPS estimates by 4–12%.
- Sustainable growth visibility remains limited, according to Jefferies.
JPMorgan: Maintain Neutral, Target Price Rs 440
- JPMorgan has maintained its Neutral rating but cut its target price to Rs 440 from Rs 490.
- The brokerage expects revenue and Ebitda to recover in the second half, supported by small-molecule deliveries and stronger orders.
- Antibody-drug conjugate activity is improving, supported by new GMP campaigns and payload-linker enquiries.
- JPMorgan has cut its fiscal 2027–29 earnings estimate as well by 8%, 24%, and 4%, respectively, amid margin and execution risks.
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