Angel One recommends Buy on Lincoln Pharmaceuticals Ltd with a Target Price of Rs. 845 per share, potential upside 39%

Angel One Rating – We recommend a ‘Buy’ on LINCOLN with a target price of Rs. 845, valuing the stock at ~15x FY27E EPS of Rs. 56. A strong Q1 FY27 (PAT +31% YoY) leads us to lift our estimates, and the target is underpinned by a diversified branded-generic portfolio, a debt-free balance sheet, a widening regulated-market export franchise, and a credible path to Rs. 1,000 crore revenue. At ~14.5x trailing earnings, Lincoln trades at a steep discount to the ~30x pharma-sector median, leaving room for re-rating as earnings compound. We note, however, that a part of recent profit is other income driven, so the pace of core operating delivery is the key monitorable.

During FY26, the Company reported net profit of Rs. 87.89 crore (6.74% Y-oY growth), Total income of Rs. 704.48 crore (9.10% Y-o-Y growth), EBITDA of Rs. 131.14 crore (5.78% Y-o-Y growth). Company recommended a dividend of 18 %, Rs. 1.80 per share on the face value of Rs. 10 per share for the FY 2025-26, subject to shareholder approval at the upcoming Annual General Meeting.

The Company is targeting revenue of Rs. 1,000 crore over the next three years, as part of its broader strategy to achieve an annual growth rate of 15-18%. The company expects its growth to be supported by strong performance across key therapeutic segments including cardiac, diabetic, dermatology and ENT. 

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