Buy Emcure Pharmaceuticals; target of Rs 2330: Motilal Oswal

Moneycontrol • 10 days ago

Original source

Key Investment Pillars

  • Emcure's domestic formulation segment is showing signs of recovery, led by gynecology, anti-infectives, cardiac, and anti-diabetic segments, with key brands delivering strong growth.
  • The company's European business is driven by a strong pipeline of complex generics, including liposomal amphotericin B, with a expected CAGR of 17% over FY26-28E.
  • Emcure's Canada business is gaining traction, with a growth pipeline of 50+ products, including eight near-term first-generic opportunities, and a focus on complex generics and injectables.
  • The company's RoW business is driven by its ARV portfolio, with a strong order book and expanding presence in semi-regulated markets.

Thesis Validation Checklist

  • Investors should watch for continued growth momentum in Emcure's domestic formulation segment, driven by key brands and portfolio expansion.
  • The company's ability to execute on its European pipeline, particularly in complex generics, will be crucial for driving growth.
  • Emcure's Canada business should continue to gain traction, driven by new launches and market share gains.
  • The company's RoW business should maintain its growth momentum, driven by its ARV portfolio and expanding presence in semi-regulated markets.