Laurus Labs shares are up 100% in the last 12 months and Motilal Oswal sees further upside

Shares of Laurus Labs Ltd. gained on Thursday, February 26, as brokerage firm Motilal Oswal said it is positive on the stock.

Motilal Oswal has maintained its 'buy' rating on Laurus Labs with a price target of ₹1,280 per share, indicating a potential upside of 18.9% from its previous close.

The brokerage said it analysed the narration compared to the actual outcomes and financial performance across contract development and manufacturing organisation (CDMO) peers, highlighting an uneven recovery, with some companies facing guidance resets due to program delays, destocking and slower commercial conversions.

In comparison to its peers, Laurus Labs has delivered stronger execution, reporting a 30% growth from the previous year and 26% EBITDA margin in the first nine months of this fiscal so far, supported by a scale-up in the CDMO and formulation segments, Motilal Oswal said.

With a significant capex underway and scaled capabilities, Laurus Labs appears well-positioned to sustain its growth in the CDMO division, benefit from a ramp-up in commercial supply and maintain leadership through the next phase of CDMO cycle, Motilal Oswal said.

The brokerage expects Laurus Labs to end financial year 2026 with a Profit After Tax (PAT) of ₹850 crore and reach ₹1,150 crore by financial year 2028, implying a Compounded Annual Growth Rate (CAGR) of 16% by this period.

Of the 18 analysts who have coverage on Laurus Labs, eight have a "buy" rating, four have a "hold" rating and six have a "sell" rating.

Shares of Laurus Labs are trading 0.9% higher on Thursday at ₹1,086.55. The stock has doubled over the last 12 months, having gained 10% in the last month itself.

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