19 analysts now have coverage on Laurus Labs, of which 11 have a “buy” rating on the stock, while four each have a “hold” and “sell” rating.
Brokerage firm InCred has now become the bull with the highest price target on the street for Laurus Labs. It upgraded its rating on the stock to “ADD” from its earlier rating of “hold” and raised its price target to ₹1,990 from ₹1,020 earlier.
InCred wrote in its note that their estimates carry the mix decisively towards the high-margin CDMO business, thereby lifting its EBITDA margin to nearly 30% by financial year 2028.
On the current pipeline, InCred also said that the company’s financial year 2030 target of CDMO being 50% of overall topline as “credible.”
CDMO lumpiness, capex absorption, and unwinding of the currency tailwind are some of the key risks for Laurus, as per InCred’s note.
DAM Capital also maintained its “buy” rating on Laurus Labs with a price target of ₹1,820.
The brokerage stated that going forward, CDMO will remain the primary driver of growth for the company.
“A pick-up in revenue utilization, driven by higher margin CDMO business, should lead continued improvement in profitability,” DAM Capital wrote, adding that strategy to invest in cutting edge technologies like cell / gene therapy etc. can create significant value if they deliver as expected.
On the flip side, Kotak Institutional Securities continues to remain bearish on Laurus Labs, ever since it initiated coverage on the stock back in 2021.
Since its last downgrade on Laurus to “sell”, Kotak has raised its price target on Laurus from ₹300 back then, to ₹1,125. The recent one came after these results, where Kotak raised its target from ₹800.
During the same timeframe, shares of Laurus have gone up from levels of ₹395 till the current market price of over ₹1,700.
For then June quarter, Laurus reported record revenue with margins at multi-year high levels.
The CDMO business revenue increased by 67% from last year, while small molecule revenue grew by 69%.
Shares of Laurus Labs are trading 8% higher on Monday at ₹1,728.7. The stock is still up 56% so far till date this year.
