Synopsis: Motilal Oswal initiated protection on Rubicon Analysis with a ‘Purchase’ score and Rs. 930 goal, which is 27% upside from present ranges citing robust R&D capabilities, 29% income and 43% PAT CAGR outlook, over 30% RoE, and potential 50% upside.
This firm is a pharmaceutical firm engaged within the improvement, manufacturing, & commercialization of differentiated formulations is now within the focus after Motilal Oswal gave a ‘BUY’ Goal.
With market capitalization of Rs. 12,107 cr, the shares of Rubicon Analysis Ltd are presently buying and selling at Rs. 730 per share, from its earlier shut of Rs.744.05 per share. This firm was listed on October sixteenth 2025, listed at a value of Rs. 620.00, which is 27.84% larger than the allotment value.
MOSL Goal & Rationale on Rubicon Analysis
Motilal Oswal has began monitoring Rubicon Analysis, giving it a ‘Purchase’ score with a goal value of Rs. 740 per share, up 1.3% from the present ranges. Within the bull-case state of affairs, the brokerage expects the inventory value to succeed in Rs. 930, which implies it may achieve round 27% from its present value.
Rubicon Analysis is a pharmaceutical firm centered on analysis and improvement (R&D). It develops and manufactures medicines for each home and worldwide markets, significantly america, the place it has a powerful observe document of regulatory compliance, a key issue that builds belief with world purchasers and regulators.
The corporate’s income (gross sales) elevated at a compound annual progress charge (CAGR) of 60% from FY22 to FY25 rising from a lot smaller ranges to round Rs. 1,280 crore. Throughout this identical interval, its revenue after tax (PAT) rotated considerably from a lack of Rs. 67 crore in FY22 to a revenue of Rs. 130 crore in FY25.
Between FY25 and FY28, the brokerage expects Rubicon to keep up stable momentum, with income rising at 29% yearly and earnings rising by 43% per 12 months. This robust efficiency is predicted to return from higher operational effectivity, new product launches, and a various portfolio throughout a number of therapeutic areas.
Motilal Oswal additionally highlighted Rubicon’s spectacular return on fairness (RoE), which is predicted to exceed 30%, exhibiting the corporate’s skill to generate excessive returns from its shareholders’ funds. Contemplating these strengths, the brokerage believes Rubicon deserves a premium valuation and has valued it at 35 occasions its anticipated one-year ahead earnings.
Concerning the firm
Rubicon Analysis Ltd is an India-based, R&D-driven pharmaceutical firm centered on growing and manufacturing specialty and generic formulations for extremely regulated markets, together with the U.S. It operates a number of superior dosage platforms resembling oral solids, liquids, nasal sprays and injectables, supported by two world R&D centres and FDA-approved manufacturing amenities in Ambernath and Satara.
Rubicon Analysis posted sturdy YoY efficiency in Q2 FY26, with gross sales as much as Rs. 412 crore from Rs. 352 crore in Q1FY26 and Rs. 296 crore in Q2FY25, EBITDA up 53% to Rs. 94.3 crore from Rs. 61.7 crore final 12 months, and web revenue up 56% to Rs. 53.8 crore from Rs. 34.5 crore over the identical interval. EPS rose 54% to Rs. 3.49 from Rs. 2.27
The corporate studies a ROCE of 26.2% and ROE of 29.0%, with a debt-to-equity ratio of 0.88. It has delivered a powerful 23% revenue CAGR over the past 5 years. Operational effectivity has improved, with debtor days decreasing from 143 to 92, and dealing capital days declining from 59.3 to 45.8.
Written by Manideep Appana
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