Anthem Biosciences: Bullish Forecast Sees Target Price of Rs 850

Anthem Biosciences Sees Strong Growth in Q4FY26 Earnings

Anthem Biosciences has reported a significant increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter of fiscal year 2026 (Q4FY26), with a year-over-year (YoY) growth of 37%. This strong performance is expected to continue, driven by a deep contract research, development, and manufacturing organization (CRDMO) pipeline and a growing commercial portfolio.

The company's CRDMO pipeline is expected to drive growth, with a healthy demand for commercialized molecules aided by the ramp-up of recently launched molecules and potential commercialization of late-stage programs. Additionally, the specialty ingredients business is likely to benefit from the scale-up of glucagon-like peptide-1 (GLP-1) active pharmaceutical ingredient (API) production from the second half of calendar year 2026 (H2CY26).

Anthem Biosciences is investing INR10-12 billion in capital expenditure (capex), largely funded through internal accruals, to expand its capacities and support future growth. The company estimates a compound annual growth rate (CAGR) of 21% for revenue, 22% for EBITDA, and 19% for profit after tax (PAT) over fiscal years 2026-2028 (FY26-28E), driven by 23% growth in CDMO services, 11% in contract research organization (CRO), and 14% in specialty ingredients.

Read also: Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts

Valuation and Recommendation

At the current market price (CMP), Anthem Biosciences trades at an enterprise value-to-EBITDA (EV/EBITDA) multiple of approximately 35x and a price-to-earnings (P/E) multiple of around 50x on fiscal year 2028 earnings estimates (FY28E). Despite this, the research firm maintains a BUY rating and values the company at 55x FY28E P/E, with a revised target price of INR 850 per share.

Note: CAGR - Compound Annual Growth Rate, CDMO - Contract Research, Development, and Manufacturing Organization, CRO - Contract Research Organization, EBITDA - Earnings Before Interest, Taxes, Depreciation, and Amortization, FY - Fiscal Year, INR - Indian Rupees, PAT - Profit After Tax, P/E - Price-to-Earnings, YoY - Year-over-Year.

Read also: Suzlon to Expand Business Scope Beyond Wind Energy, Invests Rs 500 Crore in New Subsidiary This Fiscal Year