Goldman Sachs has identified several pharmaceutical stocks with significant upside potential, recommending those that could see price increases of up to 28 percent. These stocks are expected to perform well based on strong growth prospects, upcoming product launches, and solid market positioning in the healthcare sector.
Here are a few Pharma stocks recommended by Goldman Sachs with an upside potential of up to 28 percent:
1. Suven Pharmaceuticals Limited
Suven Pharmaceuticals Limited was established in 2018 and specializes in developing and manufacturing NCE-based intermediates, APIs, and formulated drugs. It operates as a CDMO, leveraging expertise in cyanation and heterocyclic chemistry from its Hyderabad headquarters.
Stock Price Movement
With a market capitalization of Rs. 27,347.91 crore, the shares of Suven Pharmaceuticals Limited were currently trading at Rs. 1,074.30 per equity share, down nearly 0.63 percent from its previous day’s close price of Rs. 1,081.15.
Target
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on Suven Pharmaceuticals Limited with a target price of Rs. 1,350 per share, indicating an upside potential of 25.80 percent from today’s low of Rs. 1,073.15.
Rationale
Goldman Sachs expects strong growth for Suven Pharma, driven by the success of key drugs like Empagliflozin, Finerenone, and ADCs, along with the potential approval of new drugs. The successful integration of Cohance, Sapala, and NJ Bio, and a turnaround in AgChem macros further support growth. As a result, they anticipate the company’s EBITDA to grow at a CAGR of over 20 percent in the medium term.
Recent quarter results
Suven Pharmaceuticals Limited’s revenue from operations has increased by 38.55 percent from Rs. 220 crore in Q3 FY24 to Rs. 307 crore in Q3 FY25. The company’s net profit has increased by 76.60 percent, from Rs. 47 crore in Q3 FY24 to Rs. 83 crore in Q3 FY25.
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2. Piramal Pharma Limited
Piramal Pharma Limited was established in 2022 and specializes in pharmaceuticals through Piramal Pharma Solutions (CDMO), Piramal Critical Care (hospital generics), and Consumer Healthcare (OTC products). It operates globally across 17 facilities and serves over 100 countries with innovative healthcare solutions.
Stock Price Movement
With a market capitalization of Rs. 28,397.52 crore, the shares of Piramal Pharma Limited were currently trading at Rs. 214.20 per equity share, down nearly 3.27 percent from its previous day’s close price of Rs. 221.45.
Target
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on Piramal Pharma Limited with a target price of Rs. 275 per share, indicating an upside potential of 28.50 percent from today’s low of Rs. 214.
Rationale
Goldman Sachs expects Piramal Pharma to deliver strong profit growth, driven by high operating leverage. They project a significant increase in profit before tax margin from 3 percent in FY 2024 to over 16 percent by FY 2028. This growth is attributed to the expected strong performance of its CDMO business post FY 2026, increased CHG capacity, and a turnaround in Piramal Pharma’s ICH business.
Recent quarter results
Piramal Pharma Limited’s revenue from operations has increased by 12.54 percent from Rs. 1,958.57 crore in Q3 FY24 to Rs. 2,204.22 crore in Q3 FY25. The company’s net profit has decreased by 63.60 percent, from Rs. 10.11 crore in Q3 FY24 to Rs. 3.68 crore in Q3 FY25.
Written By – Nikhil Naik
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