Synopsis:- ICICI Direct maintains a Buy with ₹1,310 target, implying 38% upside. Q3 saw 16.7% YoY growth, led by 49% surge in sterile injectables. Radiopharma contributes 45% of the mix, with 81% exposure to the US. Vision 2030 targets doubling scale and achieving 23–25% margins.
India’s pharmaceuticals sector thrives as the world’s third-largest by volume, boasting a FY25 turnover of Rs 4.72 lakh crore ($52 billion) with exports hitting $30.47 billion, up 9.4% YoY. The domestic market, valued at around $60 billion, grew robustly amid global demand for generics and vaccines. This powerhouse drives economic growth, employing millions across 10,500 units.
With a market capitalisation of Rs 14,902 crore, the shares of Jubilant Pharmova Ltd closed at Rs 935 per share, decreased around 0.10 percent as compared to the previous closing price of Rs 935.95 apiece.
Brokerage Recommendation
ICICI Direct, a renowned brokerage firm in India, has given a “Buy” recommendation on this pharma stock with a target price of Rs 1,310 apiece, which reflects a potential increase of 38 percent from Monday’s closing price of Rs 948.00 a share.
As per the brokerage, Q3FY26 revenue has shown strong growth at 16.7% YoY to reach Rs. 2,116 crore, driven by 49% growth in its CDMO Sterile injectables, as well as continued traction in Drug Discovery and Allergy segments. However, EBITDA has remained flat at Rs. 289 crore, with a decline of 214bps due to production issues and remediation-related shutdowns.
Management reiterated its guidance, noting traction in CDMO Sterile and Drug Discovery. Radiopharma stocks were lifted by Ruby Fill, though supply-chain shortages will be a headwind in the quarters to come. The restart of production at Montreal and technology transfers associated with Line 3 were also positive, and large pharma deals are now favourably impacting the medium-term picture.
Moreover, the company is expanding aggressively, commissioning a fourth CDMO line in Spokane, and investing in six high-margin PET radiopharmacies in the US. Refurbishment of the Allergy plant and new radiopharma launches remain a key priority. Long-term targets are: double revenue by FY30, 23–25% EBITDA margins, and improvement in RoCE to high teens.
Revenue Split & Guidance
In 9M FY26, Radiopharma remained the largest contributor at 45%, followed by CDMO Sterile Injectables at 20% and CRDMO at 15%. Allergy Immunotherapy and Generics contributed 9% each. Importantly, 94% of revenues are USD-denominated, highlighting strong exposure to global markets and a clear focus on speciality products and services.
Furthermore, in 9M FY26, the US remained the dominant market, contributing 81% of total revenues, while the rest of the world accounted for 19%. Within US sales, 74% of goods and services originated from the US, 17% from Canada, and 9% from India, highlighting strong North American integration and diversified sourcing.
The company operates a strong global manufacturing and research network across North America, India, and Europe. With six manufacturing facilities, three research centres, and 45 radiopharmacies, it supports diversified operations spanning sterile injectables, radiopharmaceuticals, generics, and drug discovery. Regulatory-approved plants in the US, Canada, and India strengthen credibility and ensure consistent supply capabilities.
Jubilant Pharmova has outlined an ambitious Vision 2030 plan, targeting a doubling of revenues from Rs 6,703 crore in FY24 to Rs 13,500 crore by FY30. It also aims to improve EBITDA margins to 23–25%, reduce net debt to zero, and lift RoCE to the high teens. Current performance shows steady progress toward these goals.
Growth will be driven by leadership in Radiopharma, new PET and therapeutic launches, and expansion of high-margin radiopharmacies in the US. Capacity expansion in CDMO Sterile Injectables, addition of large pharma clients in CRDMO, stronger allergy offerings, and new generics launches are expected to support long-term expansion.
Jubilant Pharmova is a diversified pharmaceutical organisation with a strong global footprint in speciality pharma and CDMO businesses. Their businesses cover radiopharma, allergy immunotherapy, CDMO sterile injectables, CRDMO, and generics. With a strong position in North America and increasing investment in R&D, the organisation is dedicated to innovation-driven growth drivers and high-margin opportunities.
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