Laurus Labs extends rally, up 97% from Feb low; tops Dr Reddy's market-cap

Laurus Labs quoted higher for the fourth straight day, surging 15% in this period after delivering record quarterly revenue with expanded profitability and continued portfolio transformation.

Laurus Labs share price movement

 

Laurus Labs' share price continued its upward movement, hitting a new high of ₹1,798, gaining 2 per cent on the BSE in Wednesday’s intra-day trade. The stock price of the pharmaceutical company quoted higher for the fourth straight day, surging 15 per cent after the firm delivered a record quarterly revenue with expanded profitability and continued its portfolio transformation.

 

In the past month, the share price of the Contract Development and Manufacturing Organization (CDMO) company outperformed the market by soaring 20 per cent, compared to a 1 per cent rise in the BSE Sensex. The market price of Laurus Labs zoomed 97 per cent from the calendar year 2026 low of ₹913.25 registered on February 2, 2026.

 

 

At 11:33 AM on Wednesday, Laurus Labs traded 1.5 per cent higher at ₹1,785, against 1.12 per cent gain in the BSE Sensex.

 

Laurus Labs surpasses Dr Reddy’s Laboratories in market-capitalisation

 

A sharp rally in the stock price of Laurus Labs helped it surpass Dr Reddy’s Laboratories and become the eighth-valuable pharmaceutical company, in terms of market-capitalisation (market-cap). Currently, Laurus Labs' market cap stands at ₹96,572 crore, compared to Dr Reddy’s market-cap of ₹95,445 crore, BSE data shows.

 

Sun Pharmaceutical Industries in on top of the market-cap list within the pharma space, with a ₹4.73 trillion market-cap. Divis Laboratories stands in the second position with a ₹2.02 trillion market-cap, followed by Torrent Pharmaceuticals (₹1.86 trillion), Cipla (₹1.19 trillion), Zydus Lifesciences (₹1.11 trillion), Lupin (₹1.11 trillion) and Mankind Pharma (₹1.08 trillion), data shows.  Check Q1 Quarterly Results Today 

Brokerages view on Laurus Labs

 

Laurus Labs delivered a strong start to FY27, with broad-based execution across its businesses and a sharp acceleration in the CDMO segment. CDMO remains the standout growth engine, driven by late-stage clinical and commercial deliveries across multiple global partners.

 

Affordable Medicines sustained a healthy momentum, led by volume-driven leadership in Anti-Retrovirals (ARVs) and Oncology alongside growing traction from developed-market launches, with ARV's declining revenue share supporting a richer mix. Backed by capacity build-out, Laurus remains firmly positioned to sustain its transformation towards a fully integrated CDMO-led model, analysts at Indsec Securities and Finance said.

 

The brokerage firm InCred Equities upgraded Laurus Labs’ rating to ADD (from HOLD) with a higher target price of ₹1,990 (₹1,020 earlier), set at 65x FY28F EPS.  “Our estimates carry the mix decisively towards higher-margin CDMO biz, lifting the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to 30 per cent by FY28F, and we view the FY30F target of CDMO biz at 50 per cent plus of revenue as credible on the current pipeline,” analysts said in the Q1 result update.

 

Given the strong prospects for the CDMO business, Laurus guided FY27 capex of ₹2,000 crore. The company remains on track to build a commercial-scale peptide block in Vizag. The order book was healthy, with sales run-rate remaining steady in the ARV segment during the quarter, analysts at Motilal Oswal Financial Services (MOFSL) said.

 

Analysts raised the earnings estimate by 21 per cent/16 per cent for FY27/FY28, factoring in: a) a robust outlook for the CDMO segment, backed by multiple contracts across human health, animal health, and crop science, b) new launches in the FDF segment, and c) improved operating leverage.

 

MOFSL values Laurus at 65x 12M forward earnings to arrive at a target price of ₹1,980. Laurus continues to invest in manufacturing assets backed by contracts with leading pharma customers. It is also expanding its capabilities in differentiated technologies like biologics as well as Antibody-Drug Conjugates (ADCs). The brokerage firm expects a 24 per cent earnings compound annual growth rate (CAGR) over FY26-28 and reiterates a 'BUY' rating on the stock.  =====================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.