From ₹19 to ₹299, this stock soars 1475% in 5 years; Ventura sees another 53% upside
Over the past year alone, Wanbury has rallied nearly 93 percent, delivering impressive returns to investors in a staggered but consistent manner. The multibagger stock has climbed 4 percent in June so far, following a 25.5 percent gain in May, a 1 percent rise in April, and an eye-catching 37 percent surge in March. Despite facing setbacks earlier this year—dropping 25 percent in January and 21 percent in February—Wanbury has bounced back strongly, showcasing persistent buying interest.
The stock hit its 52-week high of ₹ 330 last month and its 52-week low of ₹ 151.10 in July 2024. From its Covid-era lows of ₹ 18 per share, the stock has multiplied nearly 1,565 percent — cementing its multibagger credentials.
Domestic brokerage Ventura Securities has initiated coverage on Wanbury Ltd with a bullish 'buy' rating, setting a price target of ₹ 458 over the next 24 months. With the stock currently around ₹ 299.35, this target implies a potential upside of 53 percent. Ventura sees robust earnings potential, backed by strong growth in both its API and branded formulations segments.
According to the brokerage, Wanbury's revenue is projected to grow at a CAGR of 20 percent from FY25 to FY28, reaching ₹ 1,046 crore. EBITDA and net profit are expected to post even sharper growth at 33 percent and 51 percent CAGR, respectively. By FY28, the company's EBITDA is expected to touch ₹ 177 crore, with net profit at ₹ 104 crore. Margins, too, are set to expand — EBITDA margin is seen improving by 310 basis points to 15.5 percent, while net margin may increase by 290 basis points to 10 percent.
As per the brokerage, Wanbury's strength lies in its leadership in Active Pharmaceutical Ingredients (APIs), with a global market share of 10 percent in Metformin and 30 percent in Sertraline. The API division, which largely caters to export markets, is expected to grow at a 16 percent CAGR, reaching ₹ 819 crore by FY28.
Its domestic branded formulations business is growing at an even faster clip. Focused on high-margin chronic therapies, this segment is projected to expand at a 47 percent CAGR to ₹ 227 crore by FY28, driven by new product launches and broader customer outreach, it further stated.
The company is also recovering from past setbacks, particularly its troubled Spanish formulations venture. A return to profitability in FY24 and positive net worth indicate a successful turnaround. Ventura attributes Wanbury's revival to operational efficiencies and strategic debt refinancing.
Looking ahead, Ventura pointed out that the company has allocated ₹ 165 crore for a brownfield expansion at its Tanuku plant, expected to be implemented between FY26 and FY28. This aligns with its strategy of maintaining an asset-light model while scaling up production capabilities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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