JM Financial has initiated coverage on Viyash Scientific with a 'Buy' rating and target price of ₹338, representing a 25.7% upside from current levels. Anand Rathi Research maintains its 'Buy' rating with a target price of ₹310, offering a 14% upside from the current market price of ₹276.70. Both brokerages cite the company's transformation into a vertically-integrated entity and strong growth potential in the animal health sector as key drivers for their positive recommendations.
The merger of Sequent Scientific and Viyash Life Sciences transformed the company into a globally integrated pharmaceutical platform spanning both Human and Animal Health, as reported by The Financial Express. This 'Sequent 3.0' phase provides end-to-end capabilities, increasing manufacturing scale to 2,500 kL from 370 kL and expanding the R&D team from roughly 35 scientists to over 340. The company operates an integrated intermediate-to-distribution model across 150+ countries, allowing it to minimise external dependencies and realise significant cost synergies of ₹125-150 crore by FY28 through procurement savings and manufacturing optimization.
The animal health segment is the company's primary growth engine, projected to deliver a 17% CAGR in formulations and 20% in APIs over FY26–FY29, according to The Financial Express. Viyash is particularly well-positioned to benefit from an upcoming wave of 17 drugs expected to lose patent protection over the next four years compared to only eight in the preceding four years. The Companion Animal segment has been identified as the company's highest growing segment, with management aspiring to achieve $150-200 million revenue by 2032.
JM Financial expects the company to deliver robust earnings trajectory, projecting revenue of 14%, EBITDA of 20%, and adjusted net profit CAGR of 38% over FY26–29, as reported by The Financial Express. FY26 marked a transformational year with business integration completed, with the management setting targets of 13-15% revenue growth in the near term. The company maintains a differentiated pipeline of 35 first-to-file opportunities across human formulations and APIs, and possesses a strong regulatory franchise with 10 USFDA-approved facilities and the third-highest active US Type II VMF filings globally.
Viyash Scientific's share price has risen 5% in the last five trading sessions and given a return of more than 14% in the last one month, according to The Financial Express. The stock has increased 38% since its listing. Despite strong fundamentals, the stock trades at a 30% discount to Indian generic API and formulation peers despite having higher entry barriers and stronger customer stickiness, particularly in its innovator-focused Animal Health API business. The company has set an ambitious target of achieving $1 billion revenue by 2032.
