Global brokerage Jefferies has initiated coverage on Anthem Biosciences with a Buy rating and ₹1,050 target price, implying approximately 20% upside from the company's current market price of ₹875.7 as of Friday. According to reports from The Economic Times and CNBC TV18, the brokerage has assigned a valuation of 65 times its September 2028 estimated earnings per share (EPS), representing a 10% premium to the sector's one-year forward average multiple of around 60 times. The brokerage notes that Anthem Biosciences is a high-growth Indian contract research, development and manufacturing organisation (CRDMO) with industry-leading manufacturing capabilities and a technocrat-led management team.
Jefferies expects Anthem's overall revenue to grow at an 18% CAGR between FY26 and FY29, driven primarily by its contract research, development and manufacturing organisation (CRDMO) business. As reported by The Economic Times and CNBC TV18, revenue is estimated to increase from ₹21.24 billion in FY26 to ₹34.86 billion by FY29. The brokerage highlighted that manufacturing remains a key growth driver, with existing commercial and new commercial programmes contributing to expansion, while various business units could deliver growth of 15-40% between FY26 and FY29. The growth is expected to be driven by scale-up of existing contracts and a robust pipeline of late phase projects.
According to The Economic Times and CNBC TV18, Jefferies expects gross margins to improve by 50-80 basis points annually, supported by backward integration and a better business mix. The backward integration of Anthem's largest CRDMO product in FY26 had already boosted margins, with the full benefit expected in FY27. Net profit is projected to rise from ₹5.92 billion in FY26 to ₹10.16 billion in FY29, while EPS is estimated to increase from ₹10.4 to ₹17.9. EPS growth is estimated at 18% in FY27, 15% in FY28 and 26% in FY29. Anthem Biosciences reported its first quarter earnings last month, with consolidated net profit declining 11.7% to ₹119.9 crore from ₹135.8 crore in the previous year, while revenue from operations fell 22.6% to ₹418.2 crore from ₹540.2 crore. However, EBITDA margin expanded to 39.6% from 38.1% in the year-ago period.
As reported by The Economic Times and CNBC TV18, Anthem Biosciences boasts the highest Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin of 40% and a Return on Capital Employed (RoCE) of 25% among India's CRDMO players. The company is also one of the few players with complex fermentation-based peptide capabilities. Jefferies believes Anthem's integrated CRDMO model provides an advantage by allowing customers to move projects seamlessly across discovery, development and manufacturing on a single platform. The brokerage highlighted the company's early investments in emerging therapeutic platforms such as oligonucleotides, peptides and antibody-drug conjugates (ADCs). All eight analysts who have coverage on the Anthem Biosciences stock have 'buy' recommendations on it.
Shares of Anthem Biosciences have given up their gains of the day on Friday, despite receiving positive recommendations from brokerage firms. As reported by CNBC TV18, the stock made an intraday high of ₹894.9 but is now trading at the flat line at ₹875.7. The stock has gained 38% so far this year, reflecting strong investor interest in the CRDMO sector. The current market performance suggests that while analysts remain bullish on the company's long-term prospects, near-term market dynamics may be influencing short-term price movements.
