Business: Shares of Emcure Pharmaceuticals rose over 5 per cent to hit a fresh 52-week high on Wednesday after domestic brokerage firm Kotak Institutional Equities initiated coverage on the stock with an upbeat outlook. Shares of Emcure Pharma rose 5.80% to Rs 1,577.50 per share on the BSE. Kotak has given an ‘add’ rating to Emcure Pharmaceuticals with a target price of Rs 1,655 per share, implying a potential upside of 11% from Tuesday’s close. Emcure is one of the few Indian pharmaceutical giants that does not invest directly in US generic drugs. Hence, Amcure has built a sophisticated portfolio in Canada, Europe and emerging markets based on our research and development capabilities. said
Kotak Equities’ price target for Emcure Pharma is based on EPS estimates as of September 30, 2026 and outperforms Mankind Pharma, Torrent Pharmaceuticals and JB Chemicals & Pharmaceuticals. “Despite industry-leading profitability and lack of a direct presence in the US, Emcure’s internal performance is relatively inconsistent,” Kotak said. For companies like Mankind, Torrent and JB, “the risk of further impact from drug pricing disputes in the US is small (albeit small).”
However, current valuations of around 16x FY26 EV/EBITDA and around 30x FY26 P/E still do not capture the company’s full growth potential, the brokerage said. The company believes its 10-year total revenue/EBITDA CAGR of around 12%/15% is indicative of the company’s potential success in both domestic and international markets.
