Goldman Sachs (GS) has recently initiated buy ratings on Syngene and Neuland, with price targets of ₹875 and ₹9100 respectively. However, they have initiated a sell rating on Laurus Labs with a price target of ₹350.
For Syngene, GS sees multiple catalysts in the near future, including an improving biotech funding environment, the ramp-up of their Mangalore API/Stelis biologics plant, and new contract wins, especially in the current anti-China environment. They forecast India’s global market share in small molecule CDMO and CRO to increase by FY28E in their base case.
On the other hand, for Neuland, GS also sees multiple catalysts for growth, such as an improving biotech funding environment, the launch of new capacity at unit-3, and the commercialization of a large molecule in the coming years.
However, GS has a different outlook for Laurus Labs, citing unfavorable risk-reward dynamics due to a lack of catalysts for their CDMO business in the current year, mismatched timelines for new capacity monetization, and slower growth in FY25 with risks on margin guidance.
In other news, Nomura has a buy call on Lupin with a target of ₹1,949, citing the company’s plans to consolidate its presence across markets through improved execution and cost control. They expect an improvement in EBITDA margin and free cash generation over the next two years.
Additionally, GS has initiated a buy rating on CreditAccess Grameen with a target of ₹1,788, forecasting a healthy profit CAGR on strong lending growth and continued superior profitability. Jefferies has initiated a buy rating on Entero Healthcare, expecting strong organic revenue growth and profitability as economies of scale kick in.
Lastly, Macquarie has provided target prices and ratings for various industrial companies, with BEL and Cummins India being their preferred picks. They believe that India is set for a multi-year capex upcycle with several themes at play, bolstering order backlogs in the sector.
