PL Capital rates Sai Lifesciences a Buy, sees about 16% upside

PL Capital has started coverage of Sai Lifesciences with a Buy rating and a target price of ₹1,620 per share, suggesting roughly a 16% upside from the current market level of about ₹1,390. The brokerage says the firm is well placed to gain from rising pharmaceutical outsourcing, a deep commercial pipeline and capacity expansion, thanks to its integrated contract research, development and manufacturing (CRDMO) platform. Sai Lifesciences' platform covers drug discovery, development and manufacturing, allowing it to support pharma and biotech firms throughout a molecule’s life cycle. Large pharmaceutical companies are expected to drive near‑term growth, while turning late‑stage molecules into commercial output and expanding business from existing clients should improve revenue visibility. PL Capital values the company at 55 times its estimated September 2028 P/E and notes it trades at about 29 times EV/EBITDA and 48 times the same P/E, indicating a valuation premium. More than 90% of revenue comes from repeat customers, reflecting strong client relationships. The broker projects revenue to grow at roughly 21% CAGR between FY26 and FY29 as projects move from discovery to commercial manufacturing. Over the past week the stock rose 0.40%, but it fell 13.33% over the month. Year‑to‑date it has climbed 54.96% and gained 56.36% over the last year. ## Context Pharmaceutical outsourcing in India is expanding as global drug makers look for cost‑effective partners. Firms that combine discovery, development and manufacturing, such as Sai Lifesciences, can capture a larger share of these outsourced projects.