Synopsis:
ICICI Securities highlights select Indian CDMO players with strong growth potential and up to 47 percent upside amid favorable tariff conditions.
India’s Contract Development and Manufacturing Organization (CDMO) space continues to draw investor interest as pharmaceutical companies expand their global manufacturing capabilities and service offerings.
Notably, generic drugs remain exempt from these tariffs, strengthening India’s competitive position as a reliable and cost-efficient manufacturing hub. Analysts at ICICI Securities have identified several stocks in the CDMO segment that could deliver strong upside potential of up to 50 percent from current levels.
1. Akums Drugs & Pharmaceuticals Ltd
Incorporated in 2004, Akums Drugs & Pharmaceuticals is a leading contract development and manufacturing organization offering a broad range of pharmaceutical products and services both in India and overseas.
Its core business revolves around end-to-end product development and manufacturing solutions for clients. The company’s services also extend to formulation research and development, preparation and filing of regulatory dossiers for Indian and global markets, as well as various testing services.
Beyond its CDMO operations, Akums is also engaged in the manufacturing and sale of branded formulations and active pharmaceutical ingredients, which it markets in India and abroad.
The company has a market capitalization of Rs. 7,022.92 crore and closed at Rs. 446.20 on October 9, 2025, Thursday. ICICI Securities has set a target price of Rs. 655, implying a potential upside of 46.79 percent from the latest closing price.
2. Cohance Lifesciences Ltd
Incorporated in 2018, Cohance Lifesciences, formerly known as Suven Pharmaceuticals, specializes in the development and manufacturing of New Chemical Entity (NCE) based intermediates, active pharmaceutical ingredients, specialty chemicals, and formulated drugs.
The company provides contract research and manufacturing services to global pharmaceutical, biotechnology, and chemical firms. Its expertise lies in cyanation and heterocyclic chemistry, including pyrimidines, quinolones, thiazoles, and imidazoles.
Cohance offers a comprehensive range of services such as custom synthesis, process research and development, scale-up processes, and the contractual manufacturing of intermediates, APIs, and formulations.
The company has a market capitalization of Rs. 33,730.94 crore and closed at Rs. 881.70 on October 9, 2025, Thursday. ICICI Securities has given a target price of Rs. 1,250, reflecting a potential upside of 41.77 percent from the recent closing price.
3. Piramal Pharma Ltd
Founded in 2020, Piramal Pharma provides comprehensive pharmaceutical services to clients along with a diverse portfolio of pharma products catering to both domestic and global markets.
The company operates through three key verticals — Piramal Pharma Solutions, which serves as an integrated CDMO offering APIs, finished dosage forms, biologics, vaccines, and complex injectables; Piramal Critical Care, which focuses on complex hospital generics in areas such as anaesthesia, pain management, and intrathecal therapy; and the India Consumer Healthcare division, which sells popular over-the-counter brands. Its customer base spans distributors, pharmacy chains, hospitals, government institutions, retail consumers, and other pharmaceutical companies.
The company has a market capitalization of Rs. 26,272.59 crore and closed at Rs. 197.65 on October 9, 2025, Thursday. ICICI Securities has assigned a target price of Rs. 265, indicating a potential upside of 34.07 percent from the current price.
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4. OneSource Specialty Pharma Ltd
OneSource Specialty Pharma is engaged in the research, development, manufacturing, and commercialization of biological drug products across various injectable formats. The company also provides end-to-end CDMO services across all stages of pre-clinical and clinical development, as well as the commercial supply of biologics.
The company has a market capitalization of Rs. 21,614.34 crore and closed at Rs. 1,887.30 on October 9, 2025, Thursday. ICICI Securities has placed a target price of Rs. 2,475, which translates to a potential upside of 31.13 percent from the last traded price.
5. Aurobindo Pharma Ltd
Headquartered in Hyderabad, Aurobindo Pharma is an integrated global pharmaceutical company engaged in the development, manufacturing, and commercialization of a wide range of generic and specialty pharmaceuticals along with active pharmaceutical ingredients.
The company operates across more than 150 countries and has 31 manufacturing and packaging facilities approved by top global regulatory bodies including the USFDA, UK MHRA, and Japan PMDA.
Its diverse product portfolio spans seven therapeutic areas including CNS, Anti-Retroviral, CVS, Antibiotics, Gastroenterological, Anti-Diabetics, and Anti-Allergic, supported by a strong R&D infrastructure.
The company has a market capitalization of Rs. 64,988.80 crore and closed at Rs. 1,118.95 on October 9, 2025, Thursday. ICICI Securities has given a target price of Rs. 1,300, implying a potential upside of 16.18 percent from the closing price.
Written By Manan Gangwar
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