Stocks To Buy: Nomura bets on this CRDMO player, projects 18% upside

Shares of Anthem BioSciences Ltd. will be in focus on Friday, November 28, after global brokerage firm Nomura initiated coverage on the stock with a 'Buy' rating and a price target of ₹740 per share.

The price target ascribed by Nomura, implies a potential upside of nearly 18% from Thursday's closing levels.

The brokerage wrote in its note that the company is well positioned to capitalise on CRDMO (Contract Research, Development and Manufacturing Organisation) opportunity.

Nomura expects the company's sales to grow 14%, 18% and 22% over FY26F to FY28F, while earnings are projected to rise 27%, 21% and 26% during the same period.

While revenue growth is expected to slow down in the near term from a high base, the brokerage expects growth to accelerate in FY27F and FY28F on the back of steady demand in base products, new launches and capacity additions.

The brokerage added that sustained end-market growth of key molecules, fresh launches and expanding capacity underpin its positive medium-term outlook.

Incorporated in 2006, Anthem Biosciences is a full-service CRDMO offering end-to-end solutions to pharma and biotech firms, covering drug development from early research to commercial manufacturing through an integrated model that simplifies processes and reduces compliance hassles.

The stock had listed at a premium to its issue price of ₹570 per share. It trades about 10% above its IPO price but remains 28% below its post-listing high of ₹873.50.

Anthem BioSciences shares ended 1.20% lower on Thursday at ₹625 and are down 13% over the past month.