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%.