The shares of the Pharmaceuticals company, specializing in providing pharmaceutical solutions across the various areas, are in focus after leading Global Brokerage firm Jefferies initiated a Buy Target with an upside potential of 27 percent.
With a market capitalization of 34,360.27 Crores on Monday, the shares of Cohance Lifesciences Ltd closed at Rs. 898.15 with an intraday gain of 5.6 percent, making a high of Rs. 935.00 compared to its previous close of Rs. 884.70.
Cohance Lifesciences Ltd, engaged in providing pharmaceutical solutions across the following areas, is in focus after a leading Global brokerage firm, Jefferies, initiated a Buy Target of Rs. 1,150 on it with an upto 27 percent Upside Potential from the day’s opening price.
The reasons for the “Buy” target
Strong Sales and EBITDA Growth Outlook: Jefferies expects Cohance to deliver a 20% sales CAGR and 26% EBITDA CAGR over FY25–FY28, driven by growing demand across its key business segments and improving margin profile.
ADC Industry Tailwinds & Market Leadership: The company is well-positioned to benefit from strong global momentum in the Antibody Drug Conjugate (ADC) space, with an integrated ADC offering and robust small molecule pipeline. Jefferies considers it the best ADC play among Indian listed companies.
Multiple Growth Levers: Cohance is expected to benefit from new customer and molecule additions in specialty chemicals, cross-selling opportunities, and big pharma’s increasing shift to India for CDMO services, all supporting sustainable long-term growth.
End of Destocking Pressures: After facing destocking challenges in both its specialty chemicals and pharma CDMO segments, Jefferies believes these issues are nearing resolution, setting the stage for a recovery from FY26 onwards.
Capable Management and Proven Execution: The company’s track record, experienced leadership, and technical strength in niche platforms are viewed as key enablers of its growth strategy and consistent operational performance.
Attractive Valuation with Upside Potential: With Jefferies setting a target price of ₹1,150, the stock offers a compelling risk-reward, especially given its current discount to future earnings potential and sector leadership in ADCs.
Financials & Others
The company’s revenue rose by 12.5 percent from Rs. 488 crores to Rs. 549 crores in Q1FY25-26. Meanwhile, Net profit declined from Rs. 75 crores to Rs. 46 crores in the same period.
The company reported a strong ROCE of 33.0% and ROE of 26.6%, with a low debt-to-equity ratio of 0.16, indicating robust financial health. Promoters also increased their stake significantly from 50.10% in March 2025 to 66.41% in June 2025, reflecting strong confidence in the business.
Cohance Lifesciences Ltd is a leading Hyderabad-based contract development and manufacturing organization (CDMO) that provides a wide range of services to major global pharmaceutical and fine chemical companies, particularly in their new chemical entity (NCE) development programs.
It has established an impressive international footprint with 34 years of experience. The company has over 400 scientists and has executed more than 880 projects, focusing on areas such as anti-spasmodic, anti-depressant, muscle relaxants, anti-epileptic, and anti-Parkinson medicines.
The company was originally formed as Suven Pharmaceuticals Limited. Cohance Lifesciences underwent a rebranding in May 2025 following its acquisition and integration into a global pharmaceutical platform supported by Advent International, a prominent private equity investor.
Written by Sridhar J
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