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.
Sai Life Sciences share price target, rating and rationale
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 Lifesciences share price performance
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.
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