About Goldman Sachs Custom Research and Manufacturing Services (CRO/CDMO)
Start your purchase with Syngene (TP) ₹1875
Start your purchase at Neuland, TP ₹9100
Launch of sales at Laurus Labs, TP ₹350
Syngene’s GS
Start your purchase, TP ₹875
See multiple catalysts apart from near-term macro challenges in CY24
(i) improve the financing environment for biotechnology;
(2) Start-up of Mangalore API/Stellis Biologics Plant in the second half of FY25/26
(3) Priority will be given to new contracts in particular. In the current anti-China environment.
India’s global market share is projected to increase by 30 bps (small molecule CDMOs) and 70 bps (CRO) by FY28E in the base case, while the $200 billion pharmaceutical R&D outsourcing TAM is experiencing healthy double-digit annual growth be done
GS on Newland
Start purchasing, TP ₹9100
See multiple catalysts apart from challenges to FY25 growth based on high base air conditioning
i) Improving the funding environment for biotechnology;
2) The new capacity of Unit 3 is scheduled to start operating from the end of FY2025.
3) Commercialization of polymers in FY26/27
Laurus Labs’ GS
Now on sale, TP ₹350
Risk reward is disadvantageous
i) Lack of catalyst for CDMO business in CY24
2) Mismatch between monetizing new capacity and expected schedules
3) There is a risk of slowing growth in FY2017 and margin guidance due to high valuation
Trading at 34x FY26 EPS
lupine nomura
Buy call, target ₹1,949
Management comments suggest that the company will strengthen its presence across the market
The company solidifies its presence through improved execution and cost management
Management says the company has learned from past mistakes
The company is conservative in its inorganic expansion and does not pursue large-scale acquisitions.
Higher EBITDA margins and lower capex improve free cash generation over the next two years
Balance sheet will improve and profits may rise unexpectedly
CreditAccess Grameen GS
Start Buying, Target ₹1,788
Co shows good performance throughout the cycle
Forecasting a healthy profit CAGR of 21% with a coverage ratio of 15% from FY24 to FY26
Forecast healthy profit CAGR with solid loan CAGR of 24%
Continued superior profitability with an average ROA of 5.6%, predicting a healthy profit CAGR
Continued excellent profitability, diversified loan book, Mkt Sh benefits from region
Maintaining competitiveness with India’s top credit costs and operating efficiency
The current stock price is trading at a FY25 P/B of 2.7x and a P/E ratio of 12x.
Jeffries talks about Entero Healthcare
Start Buying, Target ₹1,510
Co is a fast-growing healthcare product distributor in a large and fragmented market.
Due to the company’s wide reach and product offering, organic sales CAGR is expected to reach 20% from FY24 to FY26
Due to the company’s strong technology platform, organic revenue CAGR is expected to reach 20% from FY24 to FY26
Companies need to benefit from industry consolidation
From FY24 to FY26, economies of scale will gain momentum, with an estimated sales CAGR of 44% and adjusted profit increasing by 8 times.
Phoenix Mills Master’s Degree
Overweight call, target ₹3,000
The company reported same-store spending rose 9% year-over-year in the fourth quarter, up from 5% in the third quarter.
Same-store consumption data exceeds consensus
Consensus expresses concerns about slowing consumption growth in mature malls
For example, palladium consumption in Mumbai increased by only 1% year-on-year.
Palladium Mumbai consumption increased only 1% year-on-year due to the closure of the lifestyle division
Excluding Indore, same-store consumption slows down from Q3 FY2024
Nuvin Fluorine InCred
Upgrade to ADD, target cut is ₹4,080
The company’s FY24 EPS could decline by 31% year-on-year, mainly due to the slowdown in agrochemicals.
Future growth in EPS will be driven by less cyclical medicines
The company is producing multiple potential intermediates for cystic fibrosis, cancer and pain treatments
Stock price corrections based on business cycle factors are a buying opportunity
industrial macquarie
BEL and Cummins India are our picks
BEL target ₹280
Cummins India target ₹3,600
Outperforms Kohl on L&T, target ₹4,400
Outperform call on Carborundum, target ₹1,500
ABB Neutral Call, Target ₹6,550
Siemens target amount is ₹5,575
Calls underperform on BHEL, target ₹200
Thermax target amount is ₹3,550
India appears poised for a multi-year capex upcycle leveraging multiple themes
Some themes are still early/mid cycle and often influence each other
Backlog of orders is starting to increase due to tailwinds
