Blue Jet Healthcare shares may rally 22%, says Motilal Oswal

Motilal Oswal has initiated coverage on Blue Jet Healthcare with a 'buy' rating and a target price of Rs 850, implying a potential upside of 22% from current levels. The brokerage believes the market is undervaluing the company's emerging opportunities and pricing it largely on its existing business only.

Blue Jet Healthcare, a manufacturer of specialty chemicals and pharmaceutical intermediates, is expanding into high-growth areas such as contrast media and niche peptides. Motilal Oswal expects these new segments to drive revenue and earnings growth over the medium term, supported by strong execution and a healthy product pipeline.

The stock has declined nearly 15% from its 52-week high, and the brokerage sees the current valuation as an attractive entry point for long-term investors. At the target price, the stock would trade at a price-to-earnings multiple of around 40 times estimated FY26 earnings.