India's Orchid Pharma surges after Investec sees 42.3% upside in 12 months

Orchid Pharma

08/12/2023 06:08

** Shares of Orchid Pharma  ORCD.NS  surge as much as 20% to
679.30 rupees apiece, highest since July 7, 2021
    ** Stock rises after Investec initiates coverage of the
drugmaker with a "buy" recommendation
    ** Investec sets target price at 800 rupees, an implied
upside of 42.3%
    ** Adds ORCD is set for strong growth over the next three
years as new management continues to execute the turnaround
strategy well
    ** Co leveraging core strengths in key active pharma
ingredients (APIs)-like anti-microbials such as Cephalosporin,
notes Investec
    ** Estimates 35%+ compound annual growth rate (CAGR) in
earnings before interest, taxes, depreciation and amortisation
(EBITDA) over fiscal 2023-2026
    ** Stock seeing its most active session ever, with a trading
volume of 1.6 mln shares, 18.3 times the 30-day avg - LSEG data
    ** Including session's gains, ORCD stock up 82% in 2023 so
far 

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))