Laurus Labs shares are up 100% in the last 12 months and Motilal Oswal sees further upside Shares of Laurus Labs Ltd. rose on Thursday, February 26, as brokerage firm Motilal Oswal expressed confidence in the stock’s performance. The firm reiterated its 'buy' rating on the company, setting a price target of ₹1,280 per share. This target represents an 18.9% potential increase from the stock’s previous closing price, marking the highest estimate among analysts. Motilal Oswal highlighted the company’s strong execution compared to its peers in the contract development and manufacturing organization (CDMO) sector. The brokerage noted that Laurus Labs has delivered 30% year-over-year growth and maintained a 26% EBITDA margin in the first nine months of the current fiscal year. This performance is attributed to the company’s expansion in the CDMO and formulation segments. The brokerage also projected that Laurus Labs will achieve a Profit After Tax (PAT) of ₹850 crore by the end of the financial year 2026, with forecasts of ₹1,150 crore by 2028. These figures imply a compounded annual growth rate (CAGR) of 16% over the period. Motilal Oswal emphasized that the company’s ability to outperform peers is due to its resilience amid industry challenges, including program delays, destocking, and slower commercial conversions faced by some competitors. The analysis noted that while the CDMO sector has experienced an uneven recovery, Laurus Labs has demonstrated stronger financial results. The firm’s confidence is further supported by the company’s scale-up in key business areas, which has contributed to its improved margins and growth trajectory.#motilal_oswal #laurus_labs #cdmo_sector #pharmaceutical_sector #biotechnology_sector
