According to reports from NDTV Profit, domestic brokerage firm Motilal Oswal highlighted that Blue Jet Healthcare Ltd.'s growth has been largely driven by PI of cardiovascular molecule, contrast media intermediates, and sweeteners. The brokerage believes at current levels the market largely values Blue Jet based on its existing businesses, while assigning limited value to emerging opportunities such as the 20 active CDMO RFPs, six Phase III/commercial-stage programs, the GLP-1 pipeline, and the customer-backed ₹1,000 crore Vizag expansion. As per Motilal Oswal, the Hyderabad R&D center and Vizag project significantly expand Blue Jet's opportunity set into GLP-1 intermediates, peptides, specialty APIs, and regulated-market CDMO opportunities going ahead.
If executed successfully, these initiatives could transform Blue Jet from a niche intermediates supplier into a diversified specialty pharma and contract development manufacturing organisation platform, driving higher revenue diversification, lower concentration risk, and a potential re-rating in valuation multiples over FY27-FY30. The transformation into a comprehensive specialty pharma platform could reduce concentration risk and potentially attract higher valuation multiples in the pharmaceutical sector. As reported by NDTV Profit, the brokerage expects a compound annual growth rate of 19%/28%/25% in revenue/Ebitda/PAT over FY26-28E, with the stock valued at 35x FY28E EPS to arrive at a target price of ₹720 and reiterates its Buy rating on the stock.
If executed successfully, these strategic initiatives could significantly enhance Blue Jet's market position and diversify its revenue streams beyond its current niche intermediates business. The brokerage believes that at current levels the market largely values Blue Jet based on its existing businesses, while assigning limited value to emerging opportunities such as the 20 active CDMO RFPs, six Phase III/commercial-stage programs, the GLP-1 pipeline, and the customer-backed ₹1,000 crore Vizag expansion. The transformation into a comprehensive specialty pharma platform could reduce concentration risk and potentially attract higher valuation multiples in the pharmaceutical sector.
