Stocks to Buy: Syngene and 3 other stocks to buy now for an upside potential of up to 30%

Macquarie Group has begun its coverage of the Indian Research, development, and Manufacturing Organization (CRDMO) sector with four companies getting outperform calls. 

Group highlights that the Indian CRDMO space is witnessing an increase in demand, funding recovery, global supply chain diversification, and increased pharma outsourcing.

Stock that the group has given the outperform rating are:

1. Syngene International

• CMP – Rs 704   TGT – Rs. 835 
• UPSIDE – 18.60 %

Syngene International Limited is an integrated research, development, and manufacturing services company serving global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors. Established in 1993 and headquartered in Bangalore, India, Syngene offers end-to-end scientific solutions, from early discovery to commercial manufacturing of both small and large molecules. 

Rational

The company can greatly benefit from biotech funding and supply chain de-risking. Macquarie believes that the capacity expansion will lead to higher utilization and better revenue growth. The long-term contracts and diversified customer base of the company will also benefit them.

2. Blue Jet Healthcare

• CMP – Rs 777   TGT – Rs 1,000 
• UPSIDE – 28.70 %

Blue Jet Healthcare Limited is an Indian pharmaceutical company established in 1968, specializing in the manufacturing of pharmaceutical intermediates and active pharmaceutical ingredients (APIs). The company’s product portfolio includes contrast media intermediates, artificial sweeteners like saccharin and its salts, and niche pharmaceutical intermediates.

Rational

The company can grow quickly in the contrast media business, which is used in medical imaging. The CDMO business will also expand as more products are added. The company is also likely to see strong sales growth followed by profit growth because of global partnerships with a focus on high-value products.

Also read: Tata Group stock to buy now for an upside potential of 35%; Do you own it?

3. Suven Pharma

• CMP – Rs. 1,159   TGT – Rs 1,500 
• UPSIDE – 29.42 %

Suven Pharmaceuticals Limited is an Indian biopharmaceutical company specializing in Contract Development and Manufacturing Organization (CDMO) services. 

Established in 2018 as a demerged entity from Suven Life Sciences, Suven Pharma focuses on developing and manufacturing new chemical entity (NCE)-based intermediates, active pharmaceutical ingredients (APIs), specialty chemicals, and formulated drugs for global pharmaceutical, biotechnology, and chemical companies.

Rational

Macquire is positive about the company’s antibody-drug conjugate (ADC) platform and its expansion into oligonucleotide manufacturing, both of them are high-growth areas in pharma outsourcing, and they can lead to strong revenue and profit growth.

4. Divis Laboratories

• CMP – Rs 5,930   TGT – Rs 7,400 
• UPSIDE – 24.78  %

Divi’s Laboratories Limited is a prominent Indian multinational pharmaceutical company headquartered in Hyderabad, Telangana. Established in 1990, the company specializes in the manufacturing of Active Pharmaceutical Ingredients (APIs), intermediates, and nutraceutical ingredients. 

Rational

The company has a strong position in the CRDMO industry and works with top global Pharma Companies making them an important part of the global supply chain. Macquarie believes that Divi’s custom synthesis business is on track for a significant expansion with revenue tripling by FY30 and bottom line growth of  4 times.

Written By Abhishek Das

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Stocks to Buy: Syngene and 3 other stocks to buy now for an upside potential of up to 30% appeared first on Trade Brains.