In its note, the brokerage highlighted that Laurus Labs is strengthening its position as a contract development and manufacturing organisation (CDMO), driven by deeper relationships with global innovator pharma companies and capability-led scale-up.
Also read: Dr Lal PathLabs in focus as Citi sees 25% upside; check target price hereThe company has also secured formulation-level contracts for patented products, going beyond the traditional API and intermediates scope, which provides multi-year growth visibility.
According to MOSL, Laurus has built advanced technology capabilities across areas including peptides, cell and gene therapy, fermentation, and continuous manufacturing. The move positions it for long-term growth in high-value CDMO segments.
The brokerage firm also flagged ongoing investments in capacity expansion, including biologics and adjacent segments such as animal health and crop science, which are expected to drive higher asset utilisation and open new growth avenues.Also read: Natco Pharma rolls out ‘most affordable’ semaglutide in India; check prices here
In addition, Laurus is expanding its formulations business through a strategic joint venture with KRKA, aimed at building scale in Europe and Asia-Pacific markets.
MOSL noted that the company’s antiretroviral (ARV) business continues to see steady, volume-led growth with stable pricing dynamics, providing a stable base for earnings.
The brokerage expects Laurus Labs to deliver a 16% earnings CAGR over FY26–28, supported by CDMO scale-up, diversification into generics, and steady ARV traction, while maintaining healthy margins.
According to data from Blooberg, eight of 18 analysts have a ‘buy’ rating on the stock, while four say ‘hold’ and six have a ‘sell’ rating.
Shares of the company have surged 4.19% and were trading at ₹984.50 as of 12.56 pm on Friday. While the stock has fallen 11.17% this year, it has delivered over 63% returns over the past 12 months.
