Shares of Anthem BioSciences jumped as much as 3.6% to their day's high of ₹750 on the BSE on Tuesday after international brokerage firm Citi initiated coverage on the stock with a Buy rating and a target price of ₹870, translating to an upside of 20.4% from current market levels. According to reports from The Economic Times, the positive market response reflects investor confidence in the brokerage's bullish outlook for the contract research, development, and manufacturing organization.
Citi analysts highlighted Anthem BioSciences as one of India's fastest-growing CRDMOs, with the brokerage expecting revenue to grow at a CAGR of 26% over FY23–26E, with a 15–16% increase projected for FY26E. Over FY26–28E, revenue and EBITDA are estimated to grow at CAGRs of 19% and 22% respectively. As reported by The Economic Times, growth is likely to be driven by a recovery in volumes of its top product, continued momentum in legacy molecules, and incremental contributions from new molecules commercialised in FY26.
The brokerage noted that Anthem BioSciences benefits from a multi-modality platform and large-scale manufacturing capabilities, with the highest share of revenue coming from commercial products among its Indian peers. According to The Economic Times, analysts highlighted the company's strong portfolio of commercial molecules and sticky client relationships, which provide long-term revenue visibility. Citi also sees traction in products such as Semaglutide and Peg-Fil as a key upside trigger.
Citi expects margin expansion of 150–200 basis points over the medium term, supported by backward integration and operating leverage. As reported by The Economic Times, this margin expansion is expected to drive the company's profitability growth alongside its revenue expansion. The brokerage's positive outlook reflects confidence in Anthem BioSciences' operational efficiency improvements.
Anthem BioSciences is an integrated Bangalore-based Contract Research, Development, and Manufacturing Organization (CRDMO) that supports pharmaceutical and biotech companies. Founded in 2006, it provides end-to-end services—from drug discovery (small and large molecules) to preclinical evaluation, and GMP manufacturing. According to The Economic Times, the company made its stock market debut in July last year, listing at a healthy premium of 27%. The IPO witnessed robust demand, with an overall subscription of 67.42 times, and the company had raised ₹1,016 crore from anchor investors.
