Laurus Labs gains 3%, nears record high; should you buy, hold or sell?

Thus far in September, the stock price of Laurus Labs has rallied 6 per cent, as compared to a 1.5 per cent rise in the BSE Sensex and BSE Healthcare index

Laurus Labs share price today

Shares of Laurus Labs gained 3 per cent to ₹905.85 on the BSE in Monday's intra-day trade. The stock is trading close to its all-time high of ₹922.55 touched on July 30, 2025. In the past six months, the market price of Laurus Labs has appreciated by 62 per cent.

 

Thus far in the month of September, the stock price of the pharmaceutical company has rallied 6 per cent, as compared to a 1.5 per cent rise in the BSE Sensex and BSE Healthcare index.

  Track LIVE Stock Market Updates Here

Should you buy, hold or sell?

Laurus Labs made healthy progress to start the financial year with increasing contributions from the Contract Development and Manufacturing Organisation (CDMO) business and continued advancement of the company’s pipeline with big pharma.

 

 

In the April to June 2025 quarter (Q1FY26), the company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) expanded by 10.5 percentage points to close to 25 per cent, following better operating leverage, product and segment mix. The management remains confident in the company’s outlook for improved growth in the rest of the year.

 

CareEdge Ratings expects that with improved execution and a higher anticipated contribution from the CDMO segment, the company’s margins will expand further by 150-200 basis points in the coming years. This margin improvement is likely to be supported by enhanced operating leverage, increased focus on value-added offerings, and more efficient capacity utilisation within the CDMO business.

 

Meanwhile, on July 27, 2025, Laurus has outlined an investment of ₹5,630 crore on 532-acre land in Anakapalli, Andhra Pradesh, for Laurus Pharma Zone (LPZ) for setting up manufacturing units for Pharma products. 

 

Choice Equity Broking has a 'buy' rating on Laurus with a target price of ₹1,025 per share. Laurus is currently engaged in over 110 active CDMO projects, and the management is confident of stronger growth in the remainder of FY26E. Companies, such as Laurus and Concord, continue to report healthy order book momentum, the brokerage firm said.

 

Analysts at ICICI Securities have a ‘Buy’ rating on the stock with a target price of ₹1,035 per share. The company is now getting the benefit of the same, as the CDMO quarterly run rate has gone up from ₹220-250 crore to ₹450-500 crore in two years. The CDMO contribution has also gone up from ~16 per cent to 31 per cent, which has led to a significant margin expansion. 

 

Management aspires to take it further to ~50 per cent. Besides CDMO, Laurus is also investing in new edge-technologies such as Cell and Gene therapies, the brokerage firm said in its Q1FY26 results. 

 

Additionally, the company's long-term capital expenditure guidance of ₹5,630 crore is expected to drive a significant shift in its business mix towards more profitable segments in lieu of ARV, it added.