Sustained clinical and commercial contracting across technologies and sites driving good growth outlook for CDMO business, the company said.
In the past seven trading days, the Nifty Pharma index outperformed the market by soaring 5.4 per cent, as compared to 0.1 per cent decline in the Nifty 50.
Analysts said that a combination of defensive buying, strong earnings visibility, export tailwinds, and sector rotation is driving the rally in pharma stocks.
Sai's management reiterated long-term guidance of 15-20 per cent revenue CAGR with 28-30 per cent steady state EBITDA margin over the next two to three years.
In the past one month, the Nifty Midcap 100 index outperformed the market by gaining 3.4 per cent, as compared to 0.1 per cent decline in the Nifty 50.
In the past one month, Laurus Labs and Sai Life shares have surged 18 per cent and 15 per cent, respectively. In comparison, the BSE Sensex has slipped 4.2 per cent.
Vijaya Diagnostic Centre was quoting higher for the eight straight trading day, soaring 25 per cent during the period.
In the past one month, Laurus (up 14 per cent) and Sai Life (up 15 per cent) have outperformed the market by soaring up to 15 per cent
The Nifty Pharma index was quoting higher for the fifth straight trading day, surging 3.8 per cent during the period, as against 0.37 per cent gain in Nifty 50.
Laurus Labs 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, believe analysts.
Glenmark Pharma, Cipla, Wockhardt, Mankind Pharma, Lupin, Zydus Life, Laurus, Ipca Labs, Divis Labs, Strides Pharma and Onesource were up in the range of 3% to 6%.
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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.
The management expects better Q4 and a decent overall growth in FY27
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While HDFC Securities has assigned a 'Buy' rating to Divi's Labs, Sai Life Sciences, and Piramal Pharma, it has given an 'Add' rating to Anthem BioSciences and a 'Reduce' rating to Laurus Labs
In the past two trading days, the Nifty Pharma index has rallied 3.3 per cent, as compared to 0.41 per cent decline in the Nifty 50.
The stock hit a new high of ₹1,095, appreciated 117% from its 52-week low of ₹504.30 touched on January 28, 2025.
Laurus Labs management said the fundamentals of the company's business remain strong, with sustained growth momentum in the Contract Development and Manufacturing Organization and Generic business.
BSE, Hitachi Energy, GE Vernova, Syrma SGS, Force Motors, HBL Engineering and Laurus Labs have gained more than 50% each after these companies reported over 50% growth in profit in Q1 and Q2 of FY26.