Emcure Pharmaceuticals share price jumped over 5% to hit a fresh 52-week high on Wednesday after domestic brokerage firm Kotak Institutional Equities initiated coverage on the stock with a bullish view. Emcure Pharma shares spiked as much as 5.80% to a high of ₹1,577.50 apiece on the BSE.
Kotak has assigned ‘Add’ rating to Emcure Pharmaceuticals shares with a target price of ₹1,655 per share, implying an upside potential of 11% from Tuesday’s closing price.
“Emcure is one of the few Indian pharma majors with no direct US generics exposure, thereby lending greater earnings stability. Backed by its R&D prowess, Emcure has built a complex portfolio across India, Canada, Europe and EMs," Kotak Equities said.
Emcure Pharma share price target by Kotak Equities is based on 30X September 2026 EPS estimates, implying a ~20% discount to the P/E multiples it ascribes to Mankind Pharma, Torrent Pharmaceuticals and JB Chemicals and Pharmaceuticals.
“Despite its industry-leading return ratios and no direct US exposure, we expect Emcure to trade at a discount to other domestic-focused companies, such as Mankind, Torrent and JB, owing to its relatively inconsistent domestic track record and risk (albeit very low) of any further repercussions from the US drug price fixing case," Kotak said.
However, according to the brokerage firm, current valuations of ~16X FY2026E EV/EBITDA and ~30X FY2026E P/E are yet to fully encapsulate the growth potential of the business. It believes the ~12% / 15% 10-year overall sales / EBITDA CAGRs captures the company’s potential success in the domestic and international segment.
Led by healthy organic growth, in-licensing deal with Sanofi, consolidation of Mantra and with most of the legal challenges behind, Kotak Equities expects Emcure Pharma to report a 14% overall sales CAGR over FY2024-27E.
Meanwhile, further repercussions due to the drug price-fixing cases in the US and Canada, any further litigation such as the now-resolved one with HDT Biocorp and inability to consistently outperform IPM growth are the key risks for Emcure, Kotak Equities said.
Emcure Pharmaceuticals shares were listed on Indian stock exchanges on July 10 with a strong premium of over 31% at ₹1,325.05 apiece as against the issue price of ₹1,008 per share. Emcure Pharmaceuticals stock price is up more than 19% from its listing price and over 56% from its IPO price.
The pharma stock has risen over 7% in one week and more than 21% in one month.
At 2:40 pm, Emcure Pharma shares were trading 2.51% higher at ₹1,528.40 apiece on the BSE.
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