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Brokerage firm PL Capital has initiated coverage on newly listed stock Sai Lifesciences, with a ‘Buy’ rating and a target price of ₹1,620 per share, seeing an upside potential up to 16% over the current market price of ₹1,394. PL Capital believes the company is well positioned to benefit from increasing pharmaceutical outsourcing, a deep commercial pipeline and capacity expansion, supported by its integrated contract research, development and manufacturing organisation (CRDMO) platform. In its report, the brokerage further said that Sai Life Sciences has established an integrated platform spanning drug discovery, development and manufacturing, enabling it to support pharmaceutical and biotechnology companies across a molecule’s lifecycle. The brokerage sees large pharmaceutical companies as a key near-term growth driver, while the conversion of late-stage molecules into commercial manufacturing and rising business from existing customers could strengthen revenue visibility. PL Capital has initiated coverage on Sai Life Sciences with a ‘Buy’ rating and a target price of ₹1,620 per share, valuing the company at 55 times its estimated price-to-earnings (P/E) multiple for September 2028. At the current market price of ₹1,390, the target implies an upside potential of approximately 16.5%. The brokerage noted that the stock is trading at around 29 times enterprise value to EBITDA (EV/EBITDA) on a pre-Ind AS basis and 48 times its estimated P/E for September 2028. Despite the valuation premium, PL Capital believes the company’s integrated business model, expanding commercial pipeline and growth opportunities in complex chemistry and new drug modalities support its long-term investment case. PL Capital believes Sai Life Sciences' integrated discovery-to-commercialisation model gives it an advantage in retaining customers and increasing its share of business as drug candidates progress through clinical development and into commercial production. More than 90% of the company's revenue comes from repeat customers, reflecting its established relationships and ability to support complex pharmaceutical programmes. PL Capital expects the company's revenue to grow at around 21% CAGR between FY26 and FY29, supported by a steady flow of projects moving from discovery to development and commercial manufacturing. It believes the deep pipeline and increasing wallet share from existing customers could improve revenue visibility over the coming years. Sai Life Sciences shares have posted mixed performance in the short term, rising 0.40% over the past week but declining 13.33% over the past month, indicating recent selling pressure. The monthly decline comes despite the stock maintaining strong gains over a longer period. On a year-to-date (YTD) basis, Sai Life Sciences shares have surged 54.96%, while the stock has gained 56.36% over the past year. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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