Global brokerage Jefferies has initiated coverage on Anthem Biosciences with a Buy rating and a price target of Rs 1,050, citing the company's differentiated capabilities across smalland large-molecule therapeutics, strong return ratios and a healthy growth runway. 15 on Friday.

Jefferies has assigned a valuation of 65 times its September 2028 estimated earnings per share (EPS), a 10% premium to the sector's one-year forward average multiple of around 60 times. Jefferies believes Anthem's integrated contract research, development and manufacturing organisation (CRDMO) model gives it an advantage by allowing customers to move projects seamlessly across discovery, development and manufacturing on a single platform.

The brokerage also highlighted the company's early investments in emerging therapeutic platforms such as oligonucleotides, peptides and antibody-drug conjugates (ADCs). Why Jefferies is bullish on Anthem BiosciencesAccording to Jefferies, Anthem combines strong growth prospects with industry-leading return ratios.

The company reported a 25% RoCE in FY26, the highest among the major Indian CRDMO players covered by the brokerage. Jefferies expects RoCE to remain above 20% despite significant capacity expansion and increased capital expenditure.

The brokerage expects Anthem's overall revenue to grow at an 18% CAGR between FY26 and FY29, driven primarily by its CRDMO business. 86 billion by FY29.

Manufacturing is expected to remain a key growth driver, with existing commercial and new commercial programmes contributing to the expansion. 60 billion in FY29, a 21% CAGR.

EBITDA margins are expected to improve from 39% to around 42%, driven by operating leverage, better capacity utilisation and an improving gross margin profile. Gross margins are expected to improve by 50-80 basis points annually, supported by backward integration and a better business mix.

The backward integration of Anthem's largest CRDMO product in FY26 had already boosted margins, with the full benefit expected in FY27. 9.

5x in three years as ultra-rich shift strategies: ReportKey triggers and risksJefferies identified three key near-term triggers for the stock: the launch of new commercial molecules, the scale-up of CDMO molecules launched in FY26 and the commercialisation of a biosimilar for a large pharmaceutical customer. However, the brokerage also flagged customer concentration risks.