JPMorgan said in its note that the Indian Contract Research, Development, and Manufacturing Organisation (CRDMO) market is estimated to grow at a 13% CAGR to $15.4 billion by 2029, compared to $8.2 billion in 2024.
Indian CRDMOs, it added, are well-positioned to benefit from structural tailwinds and substantial investments in capacity and capabilities.
The brokerage expects a solid growth trajectory, led by robust request-for-quotation (RFQ) momentum, major capex plans, estimated at about 30% of gross block, and relative insulation from tariff-related risks.JPMorgan projects a 17% revenue CAGR between FY25 and FY28E and an earnings CAGR of 20% during the same period.
Within the sector, Divi’s Labs stands out for its organically built scale, strong process chemistry expertise, and proven execution track record.
Cohance Lifesciences, on the other hand, is expanding its opportunity set by broadening its ADC (antibody-drug conjugate) target market nearly sevenfold to $1.8 billion through acquisitions.
On Friday, shares of Divi’s Laboratories were trading 2.04% higher at ₹6,236.50, while Cohance Lifesciences shares were down 0.61% at ₹907.10.
