20 Jul , 2026 By : Debdeep Gupta
Shares of Emcure Pharmaceuticals rose 2.99% to Rs 1,836.50 on Monday after Motilal Oswal initiated coverage on the stock with a Buy rating and a target price of Rs 2,260, implying a potential upside of 23% from the current market price.
Motilal Oswal said, "Emcure is implementing efforts to enhance differentiated offerings to both DF and international markets through its own R&D and acquired products."
The brokerage highlighted the company's international growth, noting that "Over FY23-26, international revenue delivered CAGR of 21% YoY." It also said the Europe business delivered a 16?GR over FY23-26, while the Canada segment delivered a 26.8?GR during the same period.
For the Canada business, Motilal Oswal expects a 14% sales CAGR over FY26-28, taking revenue to Rs 19.4 billion. It expects the rest-of-world business to reach Rs 26 billion at an 18?GR over the same period.
On the domestic business, the brokerage said, "Considering new launches and improving traction in base products, we expect an 11% sales CAGR to reach Rs 49 billion in revenue over FY26-28."
Motilal Oswal also highlighted Emcure's M&A-led expansion, saying, "Emcure has spent an aggregate of ~Rs 10 billion to enhance its value chain through an inorganic route."
The brokerage noted that the company has built a dedicated dermatology platform, entered adjacent consumer wellness categories and is developing a super-specialty platform focused on ophthalmology and oncology. It also highlighted Emcure's integrated biologics capabilities across mammalian, microbial and mRNA production platforms.
"Together with an experienced leadership team, these high-entry-barrier therapies are expected to become meaningful long-term growth drivers and support margin expansion," Motilal Oswal said.
Under its base-case scenario, the brokerage expects a 14% revenue CAGR, 230 basis points of margin expansion and a 22% PAT CAGR over FY26-28. It values Emcure at 28x 12-month forward earnings and has set a target price of Rs 2,260.
"The bull case scenario builds in a 20% revenue CAGR with 255bp margin expansion and a 37% PAT CAGR over FY26-28, aided by a superior execution in focus markets of EU, Canada and DF," the brokerage said, assigning a bull-case target price of Rs 2,770.
Under its bear-case scenario, Motilal Oswal has set a target price of Rs 1,691.
"Considering Emcure's robust growth prospects and healthy return ratios, we value the company at 28x 12-month forward earnings, in line with the pharma universe," the brokerage said.
Motilal Oswal initiated coverage on Emcure Pharmaceuticals with a Buy rating.
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