Indegene rises 3% as ICICI Securities initiates with 'Add'; 14% upside eyed

Indegene stock rose around 3.5 per cent to hit an intraday high of ₹568.2 on the NSE as ICICI Securities has initiated coverage with 'Add' rating

Indegene share price today: Domestic brokerage ICICI Securities has initiated coverage on Indegene stock with an 'Add' rating, citing its strong client relationships with top global pharma companies, premium positioning in high-value digital services, and a robust track record of both organic and inorganic growth.

 

ICICI Securities values the company at a one-year forward P/E of 26x, in line with its assigned multiple for Sagility and close to Indegene’s historical average, to arrive at a December 2026 target price of ₹630 per share, based on a Q3FY27 one-year forward EPS estimate of ₹24. The target price implies a 14.5 per cent upside from Tuesday's closing price of ₹550.3.

 

On Wednesday, September 10, Indegene stock rose around 3.5 per cent to hit an intraday high of ₹568.2 on the NSE.

At 11:00 AM, the stock was trading at ₹217.32, up 2.5 per cent on the BSE. On a year-to-date (YTD) basis, the stock has fallen around 9 per cent. The stock's 52-week high was at ₹736.3 and 52-week low was at ₹499 on the NSE. The company's total market capitalisation stood at ₹13,534 crore.  READ STOCK MARKET LIVE UPDATES TODAY

Here's why ICICI Securities holds a positive outlook on Indegene:

Analysts at ICICI Securities said Indegene operates at the intersection of healthcare and technology, offering digital-first solutions across medical, regulatory, commercial and clinical functions. The company addresses large and expanding market opportunity of over $135 billion in life sciences operations spend, aided by secular trends – patent expiries, drug launch velocity, pricing pressure and accelerating outsourcing adoption (9–14 per cent CAGR, FY22-26E). 

 

The company's deep domain expertise, proprietary technology, and high trust among the top-20 global biopharma players allow it to capture an outsized share of the healthcare digital transformation cycle.

 

Additionally, Indegene is a trusted partner to the world's leading biopharma companies, with 64 per cent of its revenue coming from the top 20 global players. The company has a broad and deep client base, with 70 active clients - 40 of which contribute over $1 million annually, seven between $10–25 million, and two over $25 million.    ALSO READ | Tata Elxsi rises 8% in 4 days; HDFC Securities upgrades to Add from Reduce 

"With service portfolio enhancements (launch of Tectonic in Q1FY26), Indegene is ascending the client value chain. Importantly, client-specific challenges that weighed on FY25 growth – regulatory delays and project deferrals – are behind, with momentum in top accounts back on track," the brokerage said in a note.

 

The brokerage expects Indegene to deliver a revenue and EPS CAGR of 10.7 per cent and 14.7 per cent, respectively, over FY25–28. 

 

However, the brokerage also flags a few concerns, including the upcoming patent cliff causing delayed decision-making cycles, recurring client-specific issues, and ongoing regulatory headwinds.