The brokerage believes that expanding drug pipelines, increasing clinical trial activity, and new disease areas are increasing complexity for life sciences companies, while regulatory and affordability pressures are tightening budgets and timelines. This is accelerating outsourcing, as pharma shifts internal focus to core research and development. In this environment, integrated players like Indegene with capabilities across clinical, regulatory, medical, and commercial operations are well placed to capture growing demand and strengthen their strategic role with clients.
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Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has upgraded its rating on Indegene Ltd. to Buy from Neutral with a target price of Rs 708, based on 25 times FY28E earnings per share, implying a potential upside of 19% from the reports current market price of Rs 595.
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The brokerage believes that expanding drug pipelines, increasing clinical trial activity, and new disease areas are increasing complexity for life sciences companies, while regulatory and affordability pressures are tightening budgets and timelines. This is accelerating outsourcing, as pharma shifts internal focus to core research and development.
In this environment, integrated players like Indegene with capabilities across clinical, regulatory, medical, and commercial operations are well placed to capture growing demand and strengthen their strategic role with clients.
Additionally the brokerage believes that operationally, Indegene remains in the top quartile, given superior revenue per employee (higher than IT services peers and ~3x more than the healthcare BPO peers).
Motilal Oswal estimate a compound annual growth rate of ~19%/29%/27% in revenue/Ebit/PAT in INR terms over FY26-28. EBITDA margin is set to recover to 19-20% by Q4 FY27, aided by operating leverage.
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