Anthem Biosciences
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Anthem Biosciences' recent management commentary indicates a constructive outlook despite a muted Q1 FY27, attributed to temporary shipment deferrals rather than a decline in demand. The company is focused on enhancing capacity utilization and commercializing its Semaglutide API, with a strong order book visibility of 60%. This aligns with Vista's forecast of revenue contraction, as the anticipated growth from late-stage pipeline projects may not materialize in the short term due to execution risks and regulatory timelines. The competitive landscape remains challenging, with pricing pressures impacting margins, yet Anthem's strategic investments in advanced manufacturing technologies and capacity expansion are expected to support long-term growth. The macro environment in India is supportive, but foreign institutional flows turning negative could pose risks. Over the next 12-24 months, key opportunities include the successful launch of new products and expansion of manufacturing capabilities, while watchpoints include regulatory approval timelines and customer concentration risks
Why We Like This Stock
- Strong order book visibility of 60% supports management's growth outlook
- Strategic investments in capacity expansion and advanced manufacturing technologies are expected to enhance long-term profitability
- Positive macroeconomic conditions in India provide a supportive backdrop for growth
Things To Watch Out For
- Revenue is expected to contract in the near term due to shipment deferrals and execution risks
- Margins are under pressure from competitive pricing dynamics in the CRDMO sector
- Regulatory approval timelines for new products pose risks to anticipated revenue growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,419 | 1,845 | 2,124 | 2,004 | 2,289 |
| Profit Before Tax (Cr.) | 477 | 657 | 848 | 775 | 890 |
| PBT Margin | 33.6% | 35.6% | 39.9% | 38.7% | 38.9% |
| Net Profit (Cr.) | 351 | 475 | 600 | 549 | 631 |
| Earnings Per Share | 6.2 | 8.4 | 10.6 | 9.8 | 11.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Jeffries | ▲ Buy | 1,050 | 21-Aug-2026 |
| JPMorgan | ▲ Buy | 900 | 23-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 850 | 23-Jul-2026 |
| Deven Choksey | ▲ Buy | 818 | 22-Jul-2026 |
| Citigroup | ▲ Buy | 870 | 06-Jun-2026 |
| BOB Capital Markets | ▲ Buy | 900 | 21-May-2026 |
Company Overview
Show Company Profile
Anthem Biosciences Limited operates as a contract research, development, and manufacturing organization in India, rest of Asia, North America, Europe, and internationally. It operates in two segments: Contract Manufacturing, Development & Discovery Services; and Speciality Ingredients. The company offers contract research development and manufacturing services, such as end-to-end services across the new chemical entity and new biological entity lifecycles, as well as engages in contract research, development, and manufacturing of development batches of molecules used for clinical trials up to commercial manufacturing for small molecules and biologics. It also manufactures and sells specialized fermentation-based active pharmaceutical ingredients, including probiotics, enzymes, peptides, nutritional actives, vitamin analogues, and biosimilars. The company was incorporated in 2006 and is based in Bengaluru, India.