India's Akums Drugs gains; Citi initiates with a "buy"

Akums Drugs and Pharmaceuticals

12/03/2025 09:21

** Shares of Akums Drugs AKUM.NS rise 2.1% to 519 rupees apiece

** Citi Research initiates coverage of the co, which is a contract development and manufacturing organisation (CDMO), with "buy"

** Brokerage sets PT of 700 rupees, implying a 12-month return of 37.8%

** Says AKUM has an edge over competition in terms of scale, manufacturing capabilities

** Adds recent weakness due to correction in the prices of active pharma ingredients (API) will be transient, expects recovery in fiscal 2026 and 2027

** AKUM's 100-million-euro CDMO contract from a global pharma company will aid earnings, showcases potential to make inroads in international markets, says Citi

** AKUM shares down 19% in 2025 so far, nearly twice as much as the 9.5% drop in Nifty 500 index .NIFTY500 - data compiled by LSEG

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))