Sudeep Pharma shares have surged nearly 75% from their initial public offering (IPO) price of ₹593 in less than a year, reflecting strong investor interest in the pharmaceutical company and its growth prospects. The stock made a robust debut on 28 November, listing at ₹730 per share on the NSE, a premium of 23.10% over its issue price. On the BSE, it debuted at ₹733.95, marking a 23.77% premium.
However, ICICI Securities believes the stock’s valuation has run ahead of its fundamentals, despite the company’s promising position in the battery materials segment. The brokerage has maintained its Hold rating on Sudeep Pharma while raising its target price to ₹1,000 from ₹700, based on its 13 October assessment. The revised target remains below the closing market price of ₹1,018 on 13 October.
ICICI Securities said Sudeep Pharma is uniquely positioned in India’s battery materials market as the country’s sole producer of iron phosphate. Its proprietary green technology gives it an advantage over domestic peers, while its product has already received approval from eight customers ahead of the commercialisation of its first-phase facility.
The company’s 25,000-tonne-per-annum (TPA) facility is expected to become operational in early FY28. Sudeep Pharma plans to expand capacity to 100,000–200,000 TPA by FY31 to cater to an estimated 100–200 gigawatt-hours (GWh) of lithium iron phosphate (LFP) battery capacity.
The brokerage’s confidence in the company’s execution is supported by its existing food-grade iron phosphate business, which has more than a decade of manufacturing experience.