Molbio gains 9% as Jefferies assigns 'Buy' tag on innovation-led model

Molbio Diagnostics share price: Med-tech company Molbio Diagnostics' shares rallied 9 per cent in Wednesday's trading session after Jefferies initiated coverage with a 'Buy' rating on the back of its innovative model.

 

Calling Molbio a 'high-conviction pick', Jefferies has set a target price of ₹1,600 on the counter, signalling an upside of 27 per cent from its last closing price of ₹1255.60 apiece. 

 

"Molbio Diagnostics is an innovation-led med-tech company that has successfully commercialized a differentiated Point-of-Care molecular diagnostics platform. With two emerging platforms and a robust product pipeline, we believe Molbio is well-positioned for strong growth ahead," Jefferies said in a note.

 

 

In today's trading session, the newly listed stock hit the day's high of ₹1,369.20 on the NSE, gaining as much as 9 per cent. As of 9.40 AM, Molbio Diagnostic shares were trading 4.95 per cent higher at ₹1,317.80. 

 

The stock listed on the exchanges on August 17, 2026, and is currently trading 70 per cent above the offer price of ₹807. It has hit an all-time high of ₹1686.80 and a low of ₹926.35 since its stock market debut. CHECK Stock Market LIVE Updates 

Why is Jefferies bullish on Molbio?

Analysts at the global investment bank expect Molbio's growth to be driven by continued Truenat expansion in India and overseas, rapid scale-up of Prorad’s portable X-ray portfolio, and the commercial rollout of Optrascan in the US. 

 

Built after 13 years of R&D, Truenat is an ultra-portable, battery-operated molecular diagnostics (MDx) platform that brings high-quality testing to the point of care. "In our view, TrueNat is only the first of several opportunities for Molbio. The company has already expanded beyond MDx with Prorad and Optrascan, a digital pathology platform. With multiple other products under development, we believe Molbio's innovation pipeline extends well beyond its flagship product," it noted. It has also secured 16 patents in India and 191 overseas.

 

Overall, it sees Molbio delivering a FY26-29E revenue and PAT CAGR of 22 per cent and 47 per cent, respectively, driven by scale-up of existing products and operating leverage. 

 

It also expects a sharp ~830 bps margin expansion. This would be led by test-kit capacity utilization rising from 58 per cent in FY26 to 77 per cent by FY29E, Optrascan scaling to 11 per cent of sales by FY29E with 35 per cent+ EBITDA margins versus current losses, and employee costs declining from 10 per cent to 8 per cent of sales and other opex from ~22 per cent to ~18 per cent. Consequently, it forecasts EBITDA CAGR of 36 per cent.

 

Against this backdrop, Jefferies said it has initiated coverage on Molbio with a Buy rating, as it is among the few Indian innovation-led companies that have already demonstrated the success of its flagship platform with several others in the pipeline to drive long-term growth.

 

We assign a target multiple of 40x on Sep-28E EPS due to a high EPS CAGR of 47 per cent (FY26-29E), it said.

 

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