Buy Sai Life Sciences; target of Rs 1620: Prabhudas Lilladher

Key Investment Pillars

• Sai Life Sciences' integrated CRDMO platform enables end-to-end molecule commercialization, supporting client retention and wallet share gain.
• The company's deep pipeline and scalable discovery platform will support CDMO growth, with 33 commercial molecules and 14 late-stage programs across key therapies.
• Increasing focus on complex chemistry and next-gen modalities, such as peptides and ADCs, will provide opportunities for higher-value programs.
• Capacity additions, including a planned greenfield peptide manufacturing facility, are aligned with the growth pipeline and will support higher manufacturing volume.

Thesis Validation Checklist

• Watch for revenue growth acceleration in H2FY27E, driven by strong traction in existing projects and commercial ramp-up of new molecules.
• Monitor the progression of late-stage and commercial molecules, including the conversion of development programs into commercial manufacturing opportunities.
• Track the expansion of discovery and manufacturing infrastructure, including the commissioning of new facilities and the addition of new modalities.
• Assess the company's ability to maintain its strong customer relationships and repeat business, with >90% of revenue coming from repeat customers.