Emcure Pharmaceuticals' strong revenue and profit growth, along with improving prospects in its domestic and international businesses, have strengthened brokerages' confidence in the stock. Jefferies and Kotak have maintained their Buy ratings on the drugmaker. Both have raised their FY27 revenue growth expectations to over 20% from the earlier mid-teens outlook.
Key Results Highlights
- Net Profit: Increased 33.7% YoY to Rs 326 crore from Rs 244 crore.
- Revenue: Rose 24.2% to Rs 2,820 crore from Rs 2,270 crore.
- Ebitda: Grew 23.5% to Rs 587.3 crore from Rs 475.4 crore.
- Ebitda Margin: Stood at 20.8%, compared with 20.9% in the year-ago quarter.
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Jefferies: Maintains Buy
Jefferies has maintained its Buy rating on Emcure Pharmaceuticals while raising its target price to Rs 2,500 from Rs 2,320. The brokerage has raised its FY27 revenue growth expectation to over 20%, compared with its earlier estimate of mid-teens growth. It also expects the company to improve its margin by 100 basis points.
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The expansion of Amphotericin B across 20 European countries and the upcoming launch of Treprostinil are expected to support growth in international markets. Jefferies also sees a recovery in the domestic business and new product approvals helping the company improve its performance.
Reflecting its stronger outlook, the brokerage has also raised its earnings per share estimates for FY27 to FY29 by 3% to 4%.
Kotak: Maintains Buy
Kotak Institutional Equities has retained its Buy rating on Emcure Pharmaceuticals with a target price of Rs 2,450. Similar to Jefferies, Kotak also expects FY27 sales growth to exceed 20%, compared with its earlier mid-teens estimate. It also expects the company to deliver margin improvement at the upper end of its 75-100 basis points guidance.
Kotak expects the domestic business to gain strength as Zuventus recovers, new products are launched, and the company expands the reach of its existing medicines. The international business is also expected to remain an important source of growth.
The brokerage expects Emcure's earnings per share to grow at an annual rate of 19% between FY26 and FY29, supported by growth across its domestic and international businesses.
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