Target: ₹960
CMP: ₹717.75
While the Pharma sector in India broadly faces tariff-related uncertainty, we believe Senores Pharmaceuticals is well-insulated owing to its FDA-approved Atlanta facility, which serves only regulated markets, such as the US and EU.
Unlike peers reliant on India-based exports, Senores ’ US manufacturing footprint reduces tariff risk and enables participation in high-margin, high-barrier segments, such as controlled substances and government contracts. The company is also expanding into sterile injectables at its US site, diversifying beyond oral solids. In India, its formulation facility supplies to 40+ emerging markets.
In our view, this geographic and regulatory differentiation makes Senores a rare, high-quality play in the current generics landscape.
We believe Senores is poised for a growth phase, supported by its strong manufacturing base and a well-diversified product pipeline in key markets. This positions the company for robust financial performance, with Revenue/EBITDA/PAT expected to expand at a CAGR of 27.9/36.7/41.2 per cent over FY25–28E.
We value the company using a DCF approach. We initiate coverage with a target price of ₹960, with a Buy rating. This equates to an implied PE of 27x, in line with peers, and a PEG ratio of 0.63, further validating our valuation.
Risks: Slower ANDA approvals or product filings.