The initiation comes despite the stock being down 22.4% in the past three months since its listing in July 2025. Nomura believes the correction presents a favorable risk-reward opportunity for long-term investors, driven by Anthem’s positioning in the high-growth CRDMO (Contract Research, Development, and Manufacturing Organization) space.
The firm has based its Rs 740 target on 50x its estimate of Rs 14.8 EPS for Dec 2027, placing Anthem in a fair value range of 40-60x, which Nomura deems justified due to its high margin profile, superior execution, and low exposure to non-CRDMO businesses.
Nomura highlighted that India’s CRDMO industry is expected to grow at ~13% CAGR to USD 15.4 billion by FY29, outpacing the global industry’s ~9% growth.
Within this landscape, Anthem, as an integrated CRDMO with capabilities across both small and large molecules, is well positioned to outperform. Nomura estimates Anthem could deliver ~17% growth over the same period, driven by its diverse service offerings across the drug development lifecycle including drug discovery, development, and manufacturing.
The brokerage emphasized Anthem’s strong positioning in newer modalities such as ADC, RNAi, peptides, and oligonucleotides—an area where only a few Indian CRDMOs have built a track record. Anthem has developed long-standing customer relationships via its fee-for-service (FFS) model, which Nomura sees as a differentiator versus peers that rely heavily on FTE (Full Time Equivalent) contracts.Anthem’s portfolio is highly specialized, with strong exposure to enzymes, biosimilars, GLP-1s, and fermentation-based products. In addition to this, its specialty ingredient segment, which constitutes 18% of revenues, adds a niche and differentiated edge.The brokerage firm also pointed to Anthem’s early investments in biopharma (beginning in 2006), which provided a head start in building a comprehensive platform that spans both large and small pharma clients
Nomura forecasts revenue growth for Anthem at 14%/18%/22% and earnings growth of 27%/21%/26% in FY26/27/28, respectively. While revenue growth may decelerate in the near term from a high base, the brokerage expects a reacceleration from FY27 onward, supported by new launches, capacity expansion, and deeper client engagements in base products.
Anthem also boasts one of the highest revenue-to-employee productivity metrics among peers, further boosting confidence in its efficiency and scalability.
Nomura does caution that Anthem’s earnings remain sensitive to its top two products, which are projected to contribute 36–38% of revenues in FY26–28. This concentration, while currently managed well, poses a risk of near-term volatility should there be any adverse developments in those product lines.
Also read: Why Thyrocare Technologies’ shares are down 67% today, but why investors shouldn’t worry?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)