Cohance Lifesciences Ltd. share price target

We downgrade our rating from Buy to Accumulate, based on 22x FY22E EPS with a target price of Rs.746 as the recent rally has factored in the positive triggers for the company . SPL's Q1FY21 revenue grew by 21% YoY to Rs.238cr led by growth...

Post de-merger from Suven Life Sciences, pharma business will be largely driven by two cash cow CRAMS segments i.e. pharma, speciality chemicals. With a strong margin profile (+40%) without the R&D; burden of innovative pipeline, the free cash flow is likely to remain strong. Despite pandemic and high base, the company has guided 10-15% growth based on strong order book position (albeit some expected delays). Despite significant run up, there is still scope for upside as the company is still trading at significant discount to some leading players in the space dealing with innovators. We...

Valuation. At the CMP of `652, the stock trades at 22.1x, 18.3x and 15.5x respective FY21e/22e/23e earnings. We retain our Buy recommendation, with a higher price target of `760 (earlier `695), based on 18x FY23e EPS. Risks:...

During the year total revenues grew by 27% to Rs.834crs driven by 18% growth in CRAMS, 41% growth in Speciality chemicals and 40% growth in Formulations. In the CRAMS segment, the company has been able to add new customers during the year and the segment is now 56% of total revenues. In the coming year, the management stated that new projects may be difficult to undertake owing to the ongoing Covid-19 scenario. In CRAMS, the company plans to integrate into APIs and later into formulations, in addition to intermediates, which it is currently focusing on. We expect a revenue CAGR of 13% for CRAMS over FY20-FY22E...