Target: ₹310
CMP: ₹276.70
We attended the Investor Day of Viyash Scientific (formerly Sequent Scientific) to have insights into its strategies and growth outlook. Viyash Scientific, post-merger, is now a vertically-integrated company across Animal and Human Health segment, aided by a strong backward and forward capabilities spanning intermediates, APIs and Formulations. The management aspires to achieve about $1-billion revenue by 2032.
Companion Animal (CA) segment is the company’s highest growing segment with the management aspiring to achieve $150-200 million revenue by 2032.
The management highlighted strategies to grow CDMO business through: Innovator Life Cycle Management targeting 20 per cent growth with innovators including Pfizer and GSK; specialty and generics business guided to triple over the next five yearsthrough service to the EU specialty players lacking R&D/manufacturing capabilities. The current pipeline includes 15 partners, with 28 projects (nine first to file) with co-investment (50:50) in five-six products. This is a longer-term play with progress yet to become tangible.
FY26 was a transformational year with business integration complete. The management targets 13-15 per cent revenue growth in the near term. Longer term, growth is expected to come from CA opportunities, patent-expiries in 2027+ and CDMO specialty co-investment. Keeping our EBITDA estimate broadly unchanged for FY27/28e, we maintain Buy rating on the stock with a TP of ₹310, valuing it at 14x FY28e EV/EBITDA.