Mid-cap pharma stock Akum Drugs rebounds 35% from April lows. Should you buy or sell the stock?

Mid-cap pharma stock Akum Drugs has been rebounding well, rising almost 35% from April lows amid renewed strength in the domestic stock market.

Akums Drugs and Pharmaceuticals’ share price has seen sharp gains of almost 35% from closing lows of around ₹421 seen on the BSE on April 7, 2025, to ₹568 levels now. The stock had hit a 52-week low of ₹407.40 in intraday trade on April 7, in line with the sharp correction in the markets following global uncertainties and tariffs imposed by US President Donald Trump.

Akums Drugs Stock: Time to buy?

ICICI Securities, post the pharma company’s Q4 FY25 results, said that Akums Drugs and Pharmaceuticals’ revenue was ahead of our expectation, though unfavourable product mix dented margins. 

“The CDMO or Contract Development and Manufacturing business grew at a strong 14.8% in Q4, led by volume growth and realisation improvement. Akums has ₹1500 crore in cash on hand, which it may use to expand its export and CDMO operations and add new capabilities. In Q4FY27, supplies for a new 5-year export order for a European client are expected to start,” ICICI Securities added.

The management expects an 8–10% rise in the CDMO, Akumentis, and API segments, with exports expected to grow at a greater rate of 20% in FY26, highlighted ICICI analysts. As per them, it also plans to curtail losses in the trade generics segment and achieve up to 50% reduction in loss ( ₹44 crore loss in FY25) in the API segment in FY26. ICICI Securities maintains BUY ratings, with the sum of the parts (SoTP)-based unchanged target price of ₹710.

Technical View

“Akums is forming a rounding bottom on the daily charts, having reclaimed its daily moving averages. The recent pullback successfully tested these rising averages, signalling underlying strength,” said Anshul Jain, Head of Research at Lakshmishree Investments

A breakout above ₹600 will likely trigger fresh bullish momentum, initially targeting the ₹700– ₹750 zone, he said. “The strong base formation combined with supportive moving averages suggests that the stock is well-positioned for an upside continuation once the breakout level is breached,” Jain added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.