Bengaluru-based Anthem Biosciences Ltd. made an impressive entry onto the Indian stock market on Monday, rewarding investors with a handsome listing premium. The company’s shares began trading at ₹723 on the National Stock Exchange (NSE), a remarkable 26.8% premium over its final issue price of ₹570. This strong opening has captured the attention of the investment community, particularly those with a long-term investment horizon.
The successful listing was widely anticipated by market watchers. The Anthem Biosciences IPO saw overwhelming demand from all investor categories, with the issue being subscribed a phenomenal 67.42 times overall. The demand from Qualified Institutional Buyers (QIBs) was particularly strong, reaching a subscription of 192.80 times their allotted quota. This high level of interest from large, well-informed investors signals strong confidence in the company’s fundamentals and its future growth story.
What Exactly Does Anthem Biosciences Do?
For long-term investors, understanding the core business is crucial before making an investment decision. Anthem Biosciences operates as a Contract Research, Development, and Manufacturing Organization (CRDMO). In simple terms, it provides a wide range of essential services to global pharmaceutical, nutraceutical, and biotech companies. These services span the entire lifecycle of a product, from the early stages of drug discovery and development to the commercial manufacturing of new medicines.
The company has carved out a strong niche for itself with its expertise in complex, fermentation-based products and its integrated, end-to-end service model. This allows Anthem to act as a one-stop-shop for its clients, making it a valuable and sticky partner in the long, complex, and expensive process of bringing a new drug to market.
Financial Health and Expert Opinions on Share Price Targets
A look at Anthem’s financial performance reveals a healthy and consistent growth trajectory. For the fiscal year ending March 2025, the company reported a significant 30% increase in revenue, reaching ₹1,930 crore. Its profit after tax stood at ₹451 crore. These strong numbers, coupled with industry-leading margins, are a key reason why market experts are optimistic about the anthem biosciences share price target for 2025 and beyond.
Market analysts have been largely positive in their outlook following the listing.
- Prashanth Tapse, Senior VP (Research) at Mehta Equities, advises investors to “HOLD” the stock for the long term. He suggests a short-term price target of ₹900 and a long-term target of ₹1,000 and beyond, citing the company’s strong fundamentals and the growth potential of the CRDMO sector.
- Zee Business Managing Editor, Anil Singhvi, also recommended that long-term investors should hold the stock in their portfolio. For those with a shorter time frame, he suggested a stop-loss of ₹675.
What Should Investors Do Now? Buy, Sell, or Hold?
The key question on every investor’s mind is what action to take with Anthem Biosciences shares after such a strong listing.
- For Those Who Received Allotment: The consensus among experts is to book partial profits. This strategy allows you to secure your initial investment and some gains while holding the remaining shares to capitalize on the company’s long-term growth potential.
- For Those Who Missed the IPO: It may be wise to wait for the share price to stabilize after the initial listing excitement subsides. Analysts suggest that any price dip in the anthem share price could present a good entry point for new long-term investors who believe in the company’s fundamental growth story.
Understanding the Strengths and Potential Risks
Every investment comes with its own set of pros and cons.
Key Strengths:
- Leading Market Position: Anthem is a leading and respected player in the Indian CRDMO space with strong, integrated capabilities.
- High-Growth Industry: The global trend of outsourcing pharmaceutical research and manufacturing continues to grow, providing a strong tailwind for the company.
- Robust Financials: The company boasts impressive revenue growth and healthy profit margins, indicating efficient operations.
Potential Risks to Consider:
- Client Concentration: A significant portion of Anthem’s revenue comes from a small number of large clients. Losing any one of them could have a material impact.
- Intense Competition: The global CRDMO market is highly competitive, with both domestic and international players.
- Nature of the IPO: The public issue was entirely an Offer for Sale (OFS), meaning the existing promoters and shareholders sold their stake. The company itself did not receive any funds for expansion from the IPO.
The Road Ahead for Anthem Biosciences
Anthem Biosciences is strategically positioned to capitalize on the “China+1” strategy and the increasing trend of outsourcing in the global pharmaceutical industry. Its focus on innovation, R&D, and expanding its manufacturing capacity paints a promising picture for the future.
For Indian investors looking for fundamentally strong, long-term investment opportunities, Anthem Biosciences presents a compelling case. While the initial listing gains have been impressive, the true value of the company will likely unfold over the next few years as it continues to execute its growth strategy. As always, we advise investors to conduct their own due diligence and consider their personal financial goals and risk appetite before making any investment decisions.
Roshan Sharma – Founder of StocksForBeginners.in
I’m Roshan Sharma, a stock market trader with 5+ years of experience. At StocksForBeginners.in, I provide expert fundamental analysis of Indian companies to help long-term investors make informed decisions. My mission is to simplify investing for beginners and share insights from my experience to guide others toward financial growth.