Motilal Oswal Initiates Coverage of Neutral Indegene with a Price Target of Rs 552
Indegene's Revenue Growth in Line with Estimates, PAT Declines
Motilal Oswal's research report on Indegene has revealed that the company's 4QFY26 revenue rose to 6.5% QoQ to INR10b, in line with the research firm's estimate. Ex-BioPharm revenue growth, however, stood at 5.6%.
The company's EBITDA margin contracted 60 basis points QoQ to 16.3%, which is below Motilal Oswal's estimate of 16.9%. The EBIT margin stands at 12.1%. Furthermore, the company's PAT declined by 22.5% QoQ and 32.2% YoY to INR0.8b, mainly on account of margin dilution and exceptional items.
Revenue and Earnings Growth Projections
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Metric | FY25 | FY26 | FY27 | FY28 |
|---|---|---|---|---|
| Revenue Growth | - | 19% | 17% | 18% |
| EBIT Growth | - | 21% | 16% | 19% |
| PAT Growth | - | 18% | 15% | 20% |
Motilal Oswal expects Indegene to deliver a compound annual growth rate (CAGR) of 19%/21%/18% in revenue/EBIT/PAT over FY25-28. The research firm has reiterated its Neutral rating for the company with a target price (TP) of INR552, based on 20x FY28E EPS.
Investor Takeaway
Motilal Oswal maintains a Neutral rating for Indegene with a price target of Rs 552.
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