Anthem Biosciences Gets Bullish Recommendation from Prabhudas Lilladher, Target Price Set at Rs 755

Initiating Coverage on Anthem Biosciences with a 'BUY' Rating

We are initiating coverage on Anthem Biosciences with a 'BUY' rating and a target price of INR755 per share, which implies a potential upside of approximately 16% from the current market levels. Our positive outlook on the company is underpinned by its strong growth visibility, which is driven by a deep pipeline spanning discovery to late-stage development, as well as a commercial portfolio.

Anthem Biosciences' growth prospects are further supported by the demand for its commercialized molecules, which is expected to remain healthy. This is due to the ramp-up of recently launched molecules and the potential commercialization of late-stage programs. Additionally, the company's specialty ingredients business is expected to benefit from the GLP-1 API ramp-up from the second half of calendar year 2026.

The company is also investing heavily in capacity expansion to support its future growth. With a planned capital expenditure of INR10-12 billion, largely funded through internal accruals, Anthem Biosciences is well-positioned to capitalize on emerging opportunities. We forecast a compound annual growth rate (CAGR) of 21% in revenue, 22% in EBITDA, and 18% in PAT over the period of fiscal year 2026 to 2028, led by 23% growth in contract development and manufacturing services (CDMO), 11% in contract research organization (CRO), and 14% in specialty ingredients.

Read also: TrueFan AI Secures $10 Million in Funding Led by Baring PE India and Z3Partners

Anthem Biosciences is one of the fastest-growing Indian contract research, development, and manufacturing organizations (CRDMOs). At the current market price, the stock is trading at approximately 30 times enterprise value to earnings before interest, depreciation, and taxes (EV/EBIDTA) and 44 times price to earnings (P/E) on fiscal year 2028 estimates. We value the company at 50 times P/E on fiscal year 2028 estimates, which is in line with Divis. As a result, we are initiating coverage with a 'BUY' rating.