Sudeep Pharma (SUDEEPPH IN) – Company Update – Learning from Tsaker New Energy’s pCAM segment – Downgrade to ‘SELL’
Published on 14 Aug 2026
Sudeep Pharma Ltd’s (SUDEEPPH IN) has reported a sharp rise of 63% in its stock price since we initiated in Apr’26. The rise has been more on account of market expectations on its pCAM, the capacity guidance of which, it has doubled since then. Our study of Tsaker New Energy suggests that pCAM is heavily commoditized with manufacturers losing money, even at gross margin level. Sudeep initially intends to rely upon exports till the time domestic ecosystem comes up. Tsaker’s financials paint a grim picture of what may unfold for Sudeep too, unless the domestic ecosystem with sufficiently forced indigenization supports offtake of domestically produced pCAM, that too supported by ADD or PLI. We downgrade the stock from “Reduce” to “Sell”, valuing the company’s existing business at 45x FY28 EPS with target price if INR855 and ascribing no value for its pCAM segment.
