Sudeep Pharma (SUDEEPPH IN) – Q1FY27 Result Update – Phase-1 of pCAM to commission by April’27 – REDUCE
Published on 06 Aug 2026
We expect the company to deliver Revenue/EBITDA/PAT CAGRs of 13%/11%/11% over FY26–FY28E. We have assigned an option value of INR243/share to its battery-grade iron phosphate business, reflecting the long-term potential of this emerging vertical. At the current market price, the stock trades at 48x FY28E EPS, which we believe is premium valuation given the near-term earnings outlook. While the upcoming greenfield expansion provides a meaningful long-term growth opportunity, the bulk of the earnings contribution is expected only from FY29 onwards. FY28 is likely to be a transition year, with the new capacity operating at less than ~30% utilization during the ramp-up phase. Accordingly, we maintain our 'REDUCE' rating with a revised target price of INR855, valuing the company at 45x FY28 EPS.
