Laurus Labs jumps 4% on huge volumes; Motilal projects 30% further upside

Motilal Oswal remains positive on Laurus due to its strengthening position in gaining CDMO contracts, the addition of a growth lever in the generics space, and a steady ARV business.

Share price of Laurus Labs today

Share price of Laurus Labs rose 4 per cent to ₹981 on the BSE in Friday’s intra-day trade amid heavy volumes as brokerages remain upbeat on the stock, and project up to 30 per cent further upside. 

At 11:04 AM; Laurus Labs share price was quoting 3.5 per cent higher at ₹980, as compared to 1.1 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped 1.5 times with a combined 1.25 million equity shares changing hands on the NSE and BSE. The stock had hit a record high of ₹1,140.90 on January 7, 2026.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Brokerages view on Laurus Labs

Laurus delivered a strong operational and financial performance. Revenues for the December 2025 quarter (Q3FY26) grew 26 per cent to ₹1,778 crore. Gross margins expanded further from the previous quarter and maintained around 60 per cent and EBITDA margins expanded little over 27 per cent. The management said the company achieved these numbers through strong performance across its generic business and also clinical and commercial supplies of Contract Development and Manufacturing Organization (CDMO) programs to the company’s market. 

Despite an apparent slowdown in the CDMO business, the margin performance was strong on account of strong growth in generics driven by higher ARV volumes and strong offtake in select molecules within developed markets. The management expects better Q4 and a decent overall growth in FY27.  

Motilal Oswal Financial Services remains positive on Laurus due its strengthening position in gaining CDMO contracts from global innovator pharma companies, addition of a growth lever in the generics space, and steady ARV business. The brokerage firm expects a 16 per cent compound annual growth rate (CAGR) in earnings over FY26-28. It values Laurus at 62x 12-month forward earnings to arrive at a target price of ₹1,280, an 30 per cent upside over current price. 

The brokerage firm in the company report said they recently compiled the narration vs. actual outcomes and financial performance across CDMO peers in a note. The analysis indicates that Laurus delivered stronger execution than its peers, with 30 per cent YoY growth and 26 per cent EBITDA margin in 9MFY26, supported by a scale-up in the CDMO and formulation segments. 

Laurus is witnessing a strong scale-up in CDMO business from global innovator pharma, including rare formulation-level contracts for patented products (beyond API/intermediates). Advanced technology capabilities (ADC, peptides, CGT, fermentation, continuous manufacturing) and strong compliance track record (PAI waivers, approvals) position Laurus for a strong multi-year (5-7 years) growth trajectory in the high-value CDMO business, with deeper innovator relationships, the brokerage firm said.  READ | Natco Pharma shares gain 4% as board to mull demerger next week 

Meanwhile, Laurus has evolved from a single-product API company into an integrated pharma and CDMO platform, with a diversified portfolio spanning 92 APIs, 91 FDFs and a CDMO pipeline of 110 products (15 commercialised), supported by 15 manufacturing sites and strong R&D capabilities. The company has built a robust manufacturing backbone with ~240KL fermentation and ~8,200KL reactor capacity (scaling to ~10,000KL), alongside advanced modalities and capabilities such as peptides, cell and gene therapies, and continuous manufacturing, analysts at JM Financial Institutional Securities said. 

The brokerage firm recently visited Laurus Labs’ manufacturing facility (parked under Laurus Synthesis) and met with the management team (Satyanarayana Chava – CEO; V V Ravi Kumar – CFO; and Krishna Chaitanya Chava – ED CDMO) to understand the company’s evolving business mix, capacity build-out and growth roadmap. 

Emerging growth drivers include the hormones/steroids segment (targeting >₹1,000 crore versus ₹200 crore currently) and precision fermentation opportunities across high-value applications, while Laurus Bio (₹200 crore revenue) offers significant optionality with planned capacity expansion and potential for large-scale commercialisation. The core ARV business (₹850 crore) is stable with limited disruption risk.  

Strategic partnerships (e.g., KRKA), focused R&D investments (5 per cent of revenue), and entry into advanced therapies further strengthen long-term growth visibility. Additionally, Laurus Synthesis is exploring diversification into animal health and crop sciences, with potential to scale meaningfully to ₹1,000 crore+ from its current ₹150 crore base, the brokerage firm said.  ==================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.