ICICI Securities has maintained its ‘Add’ rating on Indegene, with a target price of Rs 610 per share. This implies a potential upside of 7% from the current market price. The brokerage house cites the company’s recent acquisition of BioPharm as a key growth driver, expected to strengthen Indegene’s brand activation capabilities and marketing campaign execution.
“We increase our revenue estimates by ~5%/10%/10% and cut our EPS by 0.5%/2.8%/0.6% for FY26/27/28 led by a cut in margin (due to the transaction, integrations and D&A expenses) and lower other income,” the report noted.
Let’s take a look at the key reasons why the brokerage is bullish on this stock –
ICICI Securities on Indegene: Strengthening Omnichannel and brand activation
According to the brokerage report, BioPharm enhances Indegene’s omnichannel digital marketing, brand activation, and campaign execution capabilities.
The acquisition provides deeper penetration across multiple channels – email, programmatic, video, display, social, and native and leverages rich data assets built over two decades (1.8 million and 3 million records). The report noted that BioPharm serves 17 of the top 25 global pharma companies, creating synergies while addressing different buying centres: “BioPharm deals with brand owners and Indegene derives ~85% of revenue from enterprises (i.e., centralised buying).”
ICICI Securities on Indegene: Margin profile and EPS potential
BioPharm’s EBITDA margin of 27% positions it as a high-margin addition. ICICI Securities highlighted, “We note that its sales and marketing and compliance investments are lower vs. Indegene, also adding to its margins.” While short-term headwinds are expected from transaction expenses, integration costs, incremental sales investments, and lower interest income, cost synergies of USD 1 million annually are likely to materialise post-integration through rationalisation of data purchase costs, licensing, SG&A, and offshore talent transition.
ICICI Securities on Indegene: Deal structure and funding
The total consideration of USD 104 million includes an upfront payment of USD 65 million, a deferred payment of USD 12 million by March 2026, and earnouts of up to USD 27 million based on CY25–CY26 performance. Funded through internal accruals, the acquisition will be consolidated from October 1, 2025. Tangible assets of BioPharm at closing are USD 6 million.
ICICI Securities on Indegene: Revenue growth and future prospects
BioPharm’s revenue has been volatile, with a 12% YoY decline in CY23 and 6% growth in CY24, as per the brokerage. Indegene plans to invest in go-to-market strategies to unlock BioPharm’s growth potential, targeting therapeutic areas like oncology, rare diseases, and niche HCP segments such as ophthalmology.
ICICI Securities continues to value Indegene at 26x September 2027 EPS of Rs 23 to arrive at the target price of Rs 610, maintaining its ‘Add’ rating on the stock.