Citi’s rating comes with a price target of ₹870, which implies an upside potential of 20% from current levels. As of Monday’s close, the stock is trading close to its listing price of ₹723, which is 26% higher than its issue price of ₹570 per share.
The stock had made a post-listing high of ₹873.5, before correcting. Shares had made their stock market debut in July last year.
Anthem Biosciences stands out as one of India’s fastest growing Contract Research, Development, and Manufacturing Organization (CRDMO), backed by a strong portfolio of commercial molecules, a sticky client base, multi-modality platform, large scale capacities and the highest revenue share from commercial products among its Indian peers, according to Citi’s note.
Over financial year 2023-2026, Anthem Biosciences’ revenue grew at a Compounded Annual Growth Rate (CAGR) of 26% and Citi believes that the company has the visibility to sustain this momentum.
The brokerage expects Anthem’s revenue to grow at a 19% CAGR over financial year 2026-2028 and its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow at a 22% CAGR during the same timeframe.
Within India’s CRDMO Space, Citi has highlighted Divis Laboratories and Anthem Bio as their top two bets.
Anthem Biosciences is one stock where Mutual Funds doubled down on in the month of March.
As per the shareholding pattern shared on the Bombay Stock Exchange, India’s Mutual Funds now have a 10.1% stake in the company, compared to the 6.9% stake that they owned at the end of the December quarter.
The names of HDFC Mutual Fund and SBI Mutual Fund also appear as public shareholders in the March shareholding data, along with Quant MF, whose name is present in the December shareholding as well.
Anthem Biosciences does not have significant free float in the market, with over 74% stake held by promoters, over 10% by Mutual Funds, and 1.3% by Foreign Portfolio Investors. Large Retail Investors, or those with authorized share capital of above ₹2 lakh, have a 7.7% stake in the company. Small retail shareholders have a 1.6% stake.
All seven analysts tracking Anthem Biosciences, have a “buy” rating on the stock.
Shares of Anthem Biosciences ended little changed on Monday at ₹721.8. The stock has risen 15% in the last one month.
