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Hidden Gem: Sakar Healthcare - Focused player in Anti-cancer exports (Target price: ₹ 1020)

ICICIdirect Research 31 Jul 2026 DISCLAIMER

Sakar Healthcare is a Gujarat based leading contract manufacturer for anti-cancer and other therapies for leading Indian pharma players. After establishing itself as a supplier of products with leading Indian players, it ventured into anti-cancer product development in a big way.
It does both the manufacturing and filing of products (referred to as marketing authorisations) with global regulators for Indian Pharma partners.
It exports both APIs and formulations to over 60 countries through its global distribution model.
The company has invested ~ ₹ 200 crore over the last few months and these investments are now baring fruit with the oncology business which did ₹ 100 crore of sales in FY26 is expected to clock sales of ₹ 200 crore and ₹ 300 crore for FY27 and FY28 respectively.
Continuing with strong momentum in  Q1FY27, Sakar revenues grew ~38% YoY to ₹73 crore (of which, Oncology revenues grew 97% YoY to ₹33 crore) while the gross profit grew 61% YoY to ₹38.4 crore and GPM improved 752 bps to 52.6%. EBITDA grew ~67% YoY to ₹21.2 crore with a margin improvement of 504 bps to 29.1%.
Going ahead, timely approvals of Marketing Authorisations are expected to lead to 3x increase in the oncology revenues.
On the margins front, we believe economies of scale and backward integration capabilities in oncology drugs are expected to push EBITDA margins northwards of 30%. Note that elect Onco drugs can make ~50% margins.
With no further capex lined up, we expect the existing capabilities to maintain the growth momentum.
Our target price is ₹ 1020 based on 25x FY28E EPS of ₹ 40.9.
 
 

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