Jefferies has initiated coverage on Anthem Biosciences with a Buy rating and a price target of Rs 1,050, citing the company’s differentiated capabilities across small- and large-molecule therapeutics, strong return ratios and a healthy growth runway.
The target price implies an upside of around 20% from Anthem’s current market price of Rs 874.15 on Friday. Jefferies assigned a valuation of 65 times its September 2028 estimated earnings per share (EPS), a 10% premium to the sector’s one-year forward average multiple of around 60 times.
Jefferies believes Anthem’s integrated contract research, development and manufacturing organisation (CRDMO) model gives Anthem an advantage by allowing customers to move projects seamlessly across discovery, development and manufacturing on a single platform. The brokerage also highlighted the company’s early investments in emerging therapeutic platforms such as oligonucleotides, peptides and antibody-drug conjugates (ADCs).
Investors might find the math difficult to reconcile with the stock’s current trajectory. A valuation multiple that demands perfection now—65 times earnings—suggests the market has already priced in a significant portion of this growth, leaving little room for error if execution falters.
Financial outlook is equally robust. Jefferies expects Anthem’s overall revenue to grow at an 18% CAGR between FY26 and FY29, driven primarily by its CRDMO business. Revenue is estimated to increase from Rs 21.24 billion in FY26 to Rs 34.86 billion by FY29.
Manufacturing is expected to remain a key growth driver, with existing commercial and new commercial programmes contributing to the expansion. Jefferies estimates that Anthem’s various business units could deliver growth of 15-40% between FY26 and FY29, while new commercial projects are expected to be an important contributor to the company’s growth trajectory.
Earnings outlook is equally robust. Jefferies expects Anthem’s EBITDA to rise from Rs 8.34 billion in FY26 to Rs 14.60 billion in FY29, a 21% CAGR. EBITDA margins are expected to improve from 39% to around 42%, driven by operating leverage, better capacity utilisation and an improving gross margin profile.
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Gross margins are expected to improve by 50-80 basis points annually, supported by backward integration and a better business mix. The backward integration of Anthem’s largest CRDMO product in FY26 had already boosted margins, with the full benefit expected in FY27.
Jefferies expects net profit to rise from Rs 5.92 billion in FY26 to Rs 10.16 billion in FY29, while EPS is projected to increase from Rs 10.4 to Rs 17.9. EPS growth is estimated at 18% in FY27, 15% in FY28 and 26% in FY29.
Risks and triggers
Jefferies identified three key near-term triggers for the stock: the launch of new commercial molecules, the scale-up of CDMO molecules launched in FY26 and the commercialisation of a biosimilar for a large pharmaceutical customer.
However, the brokerage also flagged customer concentration risks. Anthem’s top two projects contributed more than 30% of FY26 sales, while its partnership with Davos accounts for around 15% of FY26 sales and serves as a strategic and commercial partner in the US market.
Capacity expansion is another key factor to watch. Jefferies expects Anthem to be among the leading CRDMO companies in terms of capex spending in FY27, although it expects the company to remain in a net cash position in the coming years.
Anthem shares were trading at Rs 874.15, down 0.04% on Friday. The stock has gained 10.44% over the past month and 36.99% so far in 2026, while it is up 3.28% over the past year.
At the current market price, Jefferies’ Rs 1,050 target represents an upside of approximately 20.1%, suggesting the brokerage sees further upside despite Anthem’s premium valuation.
