Archive · 15 Sep 2025
Jefferies: Pharma Sector Poised for Growth, Top Stock Picks
Imagine there are companies in India that help other companies create and make medicines.
A financial company called Jefferies thinks these Indian companies will do really well in the next few years.
They spoke to many investors and found that some companies are great for this growth.
They chose four companies, like Divi’s Labs and Sai Life Sciences, as the best bets.
But, they also gave a 'warning' about one company, Laurus Labs, because they thought it was overvalued.
Jefferies sees strong growth ahead for the sector, but also notes some risks like whether companies can grow as fast as expected.
Jefferies forecasts strong growth for the Indian CRDMO sector over 3-5 years.
Divi's Laboratories, Cohance Lifesciences, Sai Life Sciences, and Piramal Pharma are recommended as top picks.
Laurus Labs is rated 'Underperform' due to valuation concerns.
Jefferies met with investors and found contract wins and China+1 strategy key for growth.
Concerns include high valuations, earnings volatility, and some B2B business opacity.
- Who
- Jefferies, a global brokerage
- What
- Shared stock recommendations and outlook for the Indian CRDMO sector
- When
- Over the next three to five years
- Where
- India's CRDMO sector
- Why
- Based on expected growth in the CRDMO sector
- Brokerage Firm
- Jefferies
- CRDMO Sector Forecast
- Robust growth over 3-5 years
- Divi's Laboratories Target Price
- ₹7,150
- Cohance Lifesciences Target Price
- ₹1,150
- Sai Life Sciences Target Price
- ₹1,100
- Piramal Pharma Target Price
- ₹260
- Laurus Labs Rating
- Underperform