Angel One has upgraded Lincoln Pharmaceuticals to a ‘buy’ rating following its impressive quarterly earnings and ambitious long-term revenue targets, highlighting its growth potential in the pharma sector.
Angel One has turned bullish on Lincoln Pharmaceuticals after the Ahmedabad-based drug maker reported a sharp rise in first-quarter earnings and set out a longer-term revenue target. The brokerage assigned the stock a “buy” rating with a target price of Rs 845, arguing that the company’s mix of branded generics, export growth and debt-free balance sheet leaves room for further re-rating.
The recommendation followed a strong performance in the June quarter, when Lincoln Pharmaceuticals posted consolidated net profit of Rs 36.23 crore, up 30.9% from a year earlier. Total income rose 19.0% to Rs 201.55 crore, while EBITDA increased 32.3% to Rs 51.70 crore. ICICI Direct and Kotak Neo both flagged the same quarterly trends, with profit before tax climbing 34.4% to Rs 47.55 crore and earnings per share at Rs 18.09.
Angel One said it valued the stock at about 15 times estimated FY27 earnings per share of Rs 56, while noting that the share price still trades at a discount to the wider pharma sector. The brokerage also warned that part of the recent profit growth was supported by other income, making core operating performance an important monitor.
For the full year to March 2026, Lincoln Pharmaceuticals reported net profit of Rs 87.89 crore, total income of Rs 704.48 crore and EBITDA of Rs 131.14 crore. The company has proposed a dividend of 18%, or Rs 1.80 a share, subject to shareholder approval at its annual general meeting.
Lincoln Pharmaceuticals said it is aiming for Rs 1,000 crore in revenue within three years and expects annual growth of 15% to 18%. It said the push will be led by its cardiac, diabetes, dermatology and ENT businesses, alongside a wider regulated export presence.
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