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This Article is From Jan 09, 2024

Orchid Pharma - A Preferred Play On Import Substitution Opportunity: Systematix Initiates Coverage With A Buy

Orchid Pharma - A Preferred Play On Import Substitution Opportunity: Systematix Initiates Coverage With A Buy
Closeup of a hand holding capsules for photograph. (Source: freepik)

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

We initiate coverage on Orchid Pharma Ltd. with a 'Buy' rating and a target price of Rs 884, based on 30 times FY26E earnings per share. Orchid Pharma earnings is expected to multiply manifold over the next five years as it will commercialise its cephalosporin backward integration project, benefit from launch of novel cephalosporin antibiotic and leverage its unique positioning in cephalosporin space for niche launches.

Orchid Pharma (a Dhanuka group company) is an integrated active pharmaceutical ingredient player focussed on manufacturing of cephalosporin API (a class of antibiotics).

The company has the broadest portfolio of cephalosporin APIs among peers and is the only Indian company (and one among three globally) to have a U.S. Food and Drug Administration approved sterile cephalosporin manufacturing facility.

Recently announced merger of Dhanuka labs (promoter company) with Orchid Pharma would enhance the competitive positioning of the company as the combined entity will benefit from larger scale in cephalosporin manufacturing and a wider customer base.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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