With a price target of Rs 740, Motilal Oswal projects an upside potential of 22% from the last closing price of Rs 610 per share on the NSE. “Rubicon Research is a fast-growing, R&D-driven pharmaceutical manufacturing company with a focus on regulated markets, particularly the US. Considering a strong earnings CAGR of 43% over FY25–28 and 30%+ RoE (adjusted for the recent fresh issue), we believe Rubicon should command a premium valuation,” the brokerage said in a note released earlier today.
“We believe Rubicon is building a robust business model with a multi-disciplinary, data-driven, RoI-centric product selection framework. Its consistent compliance record provides a strong foundation for superior growth in earnings and return ratios,” analysts added.
Rubicon has significantly expanded its commercial product base from 18 in FY22 to 70 by June 2025. It achieved a strong commercialization rate of 86.4% (conversion from approval to launch) as of Q1FY26, reflecting efficient execution in product rollouts.
The report also noted that Rubicon’s R&D spending stands at 11% of revenue, nearly double the industry median of 6%, underscoring its strategy to build a diversified product portfolio rather than depend on a narrow range. The company has demonstrated high efficiency in converting R&D investments into revenue, with one of the best R&D turnovers among peers, measured as US revenues relative to R&D spending from two years earlier. “With FY25 US revenue nearly 6x its FY22-23 R&D expenditure, Rubicon’s disciplined product selection and development strategy is delivering strong results,” Motilal Oswal said.
Rubicon Research made its market debut just two weeks ago, listing at an impressive 28% premium over its issue price of Rs 485. The Rs 1,377 crore IPO, which closed for subscription on October 13, received stellar demand across investor categories, being subscribed 109 times.Analysts attribute the excitement around Rubicon to its strong financial performance, specialized US generics portfolio, and scalable business model. Backed by private equity firm General Atlantic, the company has emerged as one of India’s fastest-growing pharmaceutical formulation players catering to regulated markets.At around 9:25 am, shares of Rubicon Research were trading at Rs 621, up 2% from the previous close on the NSE.
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