ET NEWS

Shares of Cohance Lifesciences surged 5.5% to Rs 935 in intraday trade after Jefferies initiated coverage with a ‘Buy’ rating and a target price of Rs 1,150. The global brokerage expressed a bullish outlook on select Indian pharma and CRDMO companies, assigning ‘Buy’ ratings to Cohance Lifesciences, Divi’s Laboratories, and SAI Life Sciences, with an estimated upside potential of up to 30%.The news triggered an upward rally in the stocks, with Cohance Lifesciences gaining 5.5%, Divi’s Laboratories advancing 2.5% to an intraday high of Rs 6,314.5, and SAI Life Sciences rising about 2% to Rs 943 apiece on the NSE.According to Jefferies,India’s CRDMO (Contract Research, Development, and Manufacturing Organization) industry is experiencing a major shift, evolving from traditional chemical manufacturing to becoming a strategic partners for global innovators. This transformation is fueled by enhanced capabilities, geographic diversification, and the strategic China+1 approach, which the brokerage expects will drive a high-teen revenue CAGR over the next ten years.Also read: Nifty bulls to regroup soon, says Anand James. Key levels to watch out forJefferies Top Picks and TargetSAI Life Sciences has been named Jefferies’ top pick in the sector, backed by its integrated service offerings, strong East-West presence, and high growth visibility. The firm expects a 15% revenue CAGR and 24% EBITDA CAGR over FY25–28E, with a target price of Rs 1,100, representing a 19% upside from its last close of Rs 924.Cohance Lifesciences has been initiated with a Buy rating and a target price of Rs 1,150, implying a 28% upside from its recent close of Rs 896. Jefferies expects Cohance to post the highest growth rate among its CRDMO coverage, with EBITDA CAGR exceeding 25% over FY25–28E. The company is also viewed as the strongest ADC (Antibody-Drug Conjugate) play in the Indian listed space, supported by a strong management team and proven execution.Divi’s Laboratories has been upgraded to Buy, driven by optimism around its GLP-1 drug pipeline, with a target price of Rs 7,150, indicating a 19% upside from the closing price of Rs 6,027.Also read: Ola Electric shares rally 5% on policy talks to speed EV adoptionIndia’s CRDMO sector—a USD 3 billion revenue industry—has experienced a 14% CAGR over the past five years. However, growth has been uneven due to Covid-related demand surges followed by a slowdown. Looking ahead, Jefferies estimates a high-teen revenue CAGR of 18% between FY25 and FY30E, driven by strong pipeline visibility, Big Pharma’s diversification through the China+1 strategy, and increasing demand for weight loss and type 2 diabetes drugs (such as GLP/GIP therapies).(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of Vodafone Idea extended their rebound on Monday, rising as much as 2.3% to Rs 7.23 on BSE after an 8% surge on Friday. The two-day rally of 10.2% follows reports that the Prime Minister’s Office is reviewing a relief package for the debt-laden telecom operator, rekindling hopes of support on its massive adjusted gross revenue (AGR) dues.On Friday, Vodafone Idea shares jumped 9.3% intraday to Rs 7.17 before closing 7.8% higher at Rs 7.07, after reports that the Department of Telecommunications had informally shared proposed bailout measures with the PMO. These include a two-year extension of the moratorium on statutory dues, more repayment flexibility, reduced annual installments, and possible waivers on penalties and interest, according to Moneycontrol.Vodafone Idea owes about Rs 83,400 crore in AGR dues, with annual commitments of roughly Rs 18,000 crore starting March 2025. Total government liabilities, including penalties and interest, are pegged at nearly Rs 2 trillion.Technical picture mixedDespite the recent bounce, Voda Idea shares remain under pressure, down 10% in 2025 and more than 54% lower over the past 12 months. From a technical perspective, the stock is trading above six of its eight key simple moving averages, indicating short-term strength, but remains below its 150-day and 200-day averages, underscoring longer-term weakness.The Relative Strength Index stands at 54.9, suggesting the stock is neither overbought nor oversold, while the Moving Average Convergence Divergence remains below the center line at -0.1, a bearish signal.Mounting financial strainThe company’s precarious financial health has been a recurring concern. During the company’s June-quarter earnings call on August 18, Chief Executive Officer Akshaya Moondra said the operator continues to seek alternative funding options for capital expenditure, noting that traditional banking channels remain largely closed due to uncertainty over AGR dues.The PMO’s decision on the proposed relief framework is seen as pivotal for the company’s survival in India’s fiercely competitive telecom market.Also read | Vodafone Idea Q1 Results: Cons loss widens YoY to Rs 6,608 crore, revenue up 5%; ARPU at Rs 177(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)