Laurus zooms 105% in 1 year, hits new high. Should you buy, hold or sell?

Thus far in the month of October 2025, Laurus Labs has outperformed the market by surging 14 per cent.

Shares price of Laurus Labs today

 

Shares of Laurus Labs hit a new high of ₹955.85, as they rallied 3 per cent on the BSE in Monday’s intra-day trade. The stock price of the pharmaceutical company has bounced back 6 per cent from its Friday’s low of ₹901.85 on the BSE.

 

Thus far in the month of October 2025, Laurus Labs stock has outperformed the market by surging 14 per cent. In the past one year, the market price of the company has more-than-doubled or zoomed 105 per cent. In comparison, the BSE Sensex was up 6 per cent during the period.

 

Laurus Labs posts strong Q2 results

 

Laurus has achieved revenue of ₹1,653 crore, representing 35 per cent growth and EBITDA of ₹429 crore, representing 136 per cent growth. The earnings before interest, taxes, depreciation, and amortization (EBITDA) margins continue to remain very healthy at 26 per cent, supported by continuing operating leverage. Profit after tax (PAT) stood ₹193.8 crore, driven by a favourable product mix and strong operational performance.

 

The management said the fundamentals of the company’s business remain strong, with sustained growth momentum in the Contract Development and Manufacturing Organization (CDMO) and Generic business.

 

Laurus Labs holds a leadership position in developing and manufacturing select Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDF) across anti-retroviral, oncology, cardiovascular, and gastro therapeutics.

 

Laurus is witnessing increased customer interest in Biocatalysis, Flow chemistry, high energy chemistry, controlled manufacturing, and peptide. Growth in generics is driven by ARV API + Formulation volume growth; stability in US Generics post new launches.  ALSO READ | Zen Technologies slips 7% on posting Q2 results; check details here

Brokerages view on Laurus Labs stock

 

Motilal Oswal Financial Services expects 50 per cent earnings compound annual growth rate (CAGR) over FY25-28 and value Laurus at 58x 12 month forward earnings to arrive at target price of ₹1,110. The brokerage firm reiterated its BUY rating on the stock.

 

Along with improving traction in the human health CDMO segment, the company has invested in manufacturing assets for the animal health and crop science aspects of the CDMO segment. In fact, the validation batches for certain products in the animal health segment are ongoing, with scale-up likely from FY27.

 

Analysts at ICICI Securities said they continue to monitor progress on these driving factors which in a way are expected to change the business mix in favour of API / CDMO segments in lieu of ARV. Besides CDMO, Laurus is also investing in new edge technologies such as Cell and Gene therapies, the brokerage firm placed a ‘BUY’ rating and target price is ₹1,075 based on 32x FY27E EBITDA of ₹1,891 crore.

 

While the earnings recovery is significant, the current valuation at 33x/26x FY26F/27F EV/EBITDA and 76x/52x FY26F/27F P/E, respectively, captures most of the positives. Analysts at InCred Equities maintain a HOLD rating on the stock with a higher target price of ₹950 (₹850 earlier). Key downside risk is a slower-than-expected margin improvement, while a faster recovery is an upside risk.

 

Choice Institutional Equities expects future growth of Laurus will be led by expansion into Antibody Drug Conjugates and Gene & Cell Therapy along with its strong existing order book. This will also position CDMO to exceed 30 per cent of revenues in the medium term with robust margins. The Generics (API + Formulations) segment is poised for recovery from FY26E, supported by strong AntiRetroviral (ARV) volumes and robust US generics launches (such as Valsartan). 

 

The brokerage firm values the company on an average of FY27-28 EPS estimates at 50x (unchanged), reflecting stronger growth visibility relative to peers and anticipated expansion in margins and return ratios. “This results in a target price of ₹1,085 (Q1FY26: ₹1,025), as it maintains BUY rating on the stock,” the brokerage firm said in its Q2 result update.