The brokerage believes that Cohance is well-placed to benefit from the Antibody Drug Conjugate (ADC) industry tailwinds, with a strong pipeline and multiple growth levers.
Cohance has faced destocking pressures in its specialty chemicals division, whose sales contribution peaked at 22% in financial year 2023, and declined to 11% in financial year 2025. Jefferies believes that the company is approaching the end of these challenges.
“Specialty chemicals are likely to recover from financial year 2026, while Pharma CDMO destocking should resolve within the next one to two quarters,” Jefferies wrote in its note.Jefferies believes that Cohance has several growth drivers that can support sustained high growth, which include strong momentum in its existing ADC business, integrated ADC offerings, a robust small molecule pipeline, new customer and molecule additions in specialty chemicals, big pharma-led diversification to India and cross-selling opportunities, and the ability to add niche and cutting-edge platforms.
All of these factors will drive a 20% sales Compounded Annual Growth Rate (CAGR) and 26% EBITDA CAGR over financial year 2025-2028, according to the brokerage.
“In our view, it is the best ADC play in the Indian listed universe, backed by a capable management team, strong skill sets and a proven track record,” Jefferies wrote.
Additionally, Jefferies has also upgraded Divis Laboratories to “buy” and raised its price target to ₹7,150 from ₹6,750 earlier. From the contract manufacturing space, Sai Life Sciences is its top pick, with a revised price target of ₹1,100 from ₹1,000 earlier.
Shares of Cohance Lifesciences are trading 1.3% higher on Monday at ₹897. The stock is down 13% in the last one month and is down 21% from its 52-week high of ₹1,121.
First Published: Aug 25, 2025 8:37 AM IS
