Jefferies initiated coverage on Anthem Biosciences on Friday with a “buy” rating and a price target of ₹1,050 per share, which implies an upside potential of 20% from Thursday’s closing levels.
The brokerage in its note said 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.
Anthem boasts of 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, and is also one of the few players with complex fermentation-based peptide capabilities, Jefferies highlighted in its note.
The brokerage expects Anthem’s revenue and Profit After Tax (PAT) to grow at a Compounded Annual Growth Rate (CAGR) of 18% and 20% respectively over financial year 2026-2029, driven by a scale-up of existing contracts and a robust pipeline of late phase projects.
Anthem Biosciences reported its first quarter earnings last month. Its consolidated net profit declined 11.7% to ₹119.9 crore from ₹135.8 crore in the previous year. Its revenue from operations fell 22.6% to ₹418.2 crore from ₹540.2 crore. The company’s EBITDA declined 18.1% to ₹175.5 crore while its EBITDA margin expanded to 39.6% from 38.1% in the year-ago period.
All eight analysts who have coverage on the Anthem Biosciences stock have “buy” recommendations on it.Shares of Anthem Biosciences, having made an intraday high of ₹894.9, are now trading at the flat line at ₹875.7. The stock has gained 38% so far this year.
