Now Reading: Angel One sees 39% upside in Lincoln Pharma stock, sets target at Rs 845
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Angel One sees 39% upside in Lincoln Pharma stock, sets target at Rs 845
Angel One sees 39% upside in Lincoln Pharma stock, sets target at Rs 845
Angel One has issued a 'buy' rating on Lincoln Pharmaceuticals with a 12-month target price of Rs 845, implying a 39% upside from the current price of Rs 608. The stock has struggled after hitting a 52-week high of Rs 770 in May 2026. The brokerage believes a trend reversal is underway, supported by the company's diversified branded-generic portfolio and debt-free balance sheet.
Lincoln Pharmaceuticals reported a 30.9% year-on-year rise in consolidated net profit to Rs 36 crore for the June quarter, while total income grew 19% to Rs 202 crore. EBITDA rose 32% to Rs 52 crore. The company has a portfolio of over 600 formulations across 15 therapeutic areas and exports to more than 60 countries. Management has set a revenue target of Rs 1,000 crore within three years.
Angel One values the stock at 15 times estimated FY27 earnings per share of Rs 56, noting that Lincoln trades at a steep discount to the pharma sector median of about 30 times. The brokerage cautioned that a part of the recent profit increase came from higher other income, making the pace of core operating performance a key monitorable.
Indian Opinion Analysis
Lincoln Pharmaceuticals operates in the branded-generic segment, where margins are typically higher than in pure generics, but competition is intense. The discount to the sector median reflects the company's smaller scale and lower market capitalisation compared to peers like Sun Pharma or Divi's. The Rs 1,000 crore revenue target implies a compound annual growth rate of around 12-15% from the FY26 base of Rs 704 crore. A key risk is that a sustained rise in other income may not be repeatable. Investors should watch the next two quarters' operating profit growth to confirm the core momentum the brokerage is betting on.
Source: livemint.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
