Stocks To Buy: JPMorgan bets on two CRDMO plays; Check price targets
Published on 19/09/2025 11:32 AM
Stocks To Buy: JPMorgan bets on two CRDMO plays; Check price targetsIndian CRDMOs, according to brokerage firm JPMorgan, are well-positioned to benefit from structural tailwinds and substantial investments in capacity and capabilities.By Meghna Sen September 19, 2025, 11:32:29 AM IST (Published)1 Min ReadGlobal brokerage firm JPMorgan has initiated coverage on Divi's Laboratories Ltd. and Cohance Lifesciences Ltd. with an 'Overweight' rating on both companies.
The brokerage has a price target of ₹7,800 for Divi's and ₹1,300 for Cohance.
JPMorgan said in its note that the Indian Contract Research, Development, and Manufacturing Organisation (CRDMO) market is estimated to grow at a 13% CAGR to $15.4 billion by 2029, compared to $8.2 billion in 2024.
Indian CRDMOs, it added, are well-positioned to benefit from structural tailwinds and substantial investments in capacity and capabilities.
The brokerage expects a solid growth trajectory, led by robust request-for-quotation (RFQ) momentum, major capex plans, estimated at about 30% of gross block, and relative insulation from tariff-related risks.
JPMorgan projects a 17% revenue CAGR between FY25 and FY28E and an earnings CAGR of 20% during the same period.
Within the sector, Divi's Labs stands out for its organically built scale, strong process chemistry expertise, and proven execution track record.
Cohance Lifesciences, on the other hand, is expanding its opportunity set by broadening its ADC (antibody-drug conjugate) target market nearly sevenfold to $1.8 billion through acquisitions.
On Friday, shares of Divi's Laboratories were trading 2.04% higher at ₹6,236.50, while Cohance Lifesciences shares were down 0.61% at ₹907.10.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagscohanceDivis LaboratoriesDivis LabsDivis Labs Share Priceshare market today