Jefferies has initiated coverage on Anthem Biosciences with a Buy rating and a target price of Rs 1,050, implying about 18% upside from its August 20 closing price of Rs 890.65.
The brokerage describes Anthem as a “Powerhouse of Capability”, highlighting its manufacturing capabilities, strong financial metrics and technocrat-led management team. Jefferies expects the company to deliver a FY26-29 estimated revenue CAGR of 18% and PAT CAGR of 20%, supported by the scaling up of existing contracts and a robust late-stage project pipeline.
Anthem is a high-growth Indian contract research, development and manufacturing organisation (CRDMO) with capabilities spanning multiple technology platforms, including fermentation, peptides, antibody-drug conjugates and oligonucleotides.
Jefferies points to Anthem's FY26 EBITDA margin of 39% and ROCE of 25%, describing these as the highest among Indian CRDMOs. The brokerage also sees the company's complex fermentation-based peptide capabilities as a differentiator.
What Could Drive Growth?
Jefferies identified three key catalysts for Anthem: the launch of new commercial molecules, scale-up of recently launched CDMO molecules and commercialisation of biosimilar programmes.
The brokerage expects Anthem's FY26-29 estimated sales CAGR at 18%, while EBITDA is expected to grow at a faster pace as the company scales its operations.
Jefferies' base-case target stands at Rs 1,050, while its upside scenario values the stock at Rs 1,150, implying roughly 29% upside. Its downside scenario places the target at Rs 790, or about 11% below the reference price.
According to Jefferies, Anthem's pipeline provides visibility for future growth, with 14 commercialised molecules and additional molecules added during FY26. The brokerage expects the contribution from commercial molecules to increase as the company scales up existing programmes.
The research firm also highlighted Anthem's manufacturing investments, saying the company has built capabilities across complex technologies and expanded its footprint ahead of the expected growth in demand.
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