Amid a gloomy trading day, Piramal Pharma shares stole the spotlight, rallying over 9% during intraday trade on January 13 before closing 4.87% higher at ₹232.45 on the BSE. This marked the stock’s most significant intraday jump since November, defying a 1% dip in the Sensex. The rally comes after three consecutive losing sessions, with the stock rebounding sharply from its monthly decline of 12%. Buoyed by optimism around its contract development and manufacturing (CDMO) business, brokerage firms have recently upgraded their outlook. Jefferies raised its target price to ₹310, citing strong momentum in contract manufacturing and expectations of margin expansion through operating leverage. JM Financial, which initiated coverage in December with a target price of ₹340, is equally bullish. It foresees the Indian CRDMO market doubling by 2028, positioning Piramal Pharma as a key player thanks to its global footprint and end-to-end capabilities. The firm projects a 17% CAGR for the CDMO segment over the next three years, fueled by new molecules and a recovery in the US biotech sector. Beyond CDMO, the company’s complex hospital generics and consumer health segments are expected to deliver steady growth, contributing to a 15% topline CAGR from FY24 to FY27. Margins are also predicted to expand by 360 basis points, reaching 18%, driven by on-patent manufacturing.