Sudeep Pharma (SUDEEPPH IN) – Initiating Coverage – The Kinetic Story – REDUCE
Published on 24 Apr 2026
Valuing Sudeep Pharma (SUDEEPPH) at 32x, we initiate coverage on the stock with ‘REDUCE’ rating. A niche player in the mineral ingredients space, SUDEEPPH has 2 product segments: Pharma, Food & Nutrition (~65% of total revenue) and Specialty Ingredients. The Specialty Ingredients portfolio accelerated in 2021 with the launch of 4 more technologies, resulting in further downstream value addition. Banking upon its experience in food-grade iron phosphate, the company is foraying into battery-grade precursor to cathode active material (pCAM) iron phosphate, with INR5bn capex for total capacity of 100,000mtpa coming up in phases starting early 2027. Led by volume growth, we expect revenue to clock 18% CAGR during FY25-28E. EBITDA is likely to clock 14% CAGR during FY25-28E. RoE is likely to decline, but remain at around ~20%. We expect EPS CAGR of 12%. Initiate with ‘REDUCE’, valuing it at 32x FY28 EPS with a target price of Rs638.
