Here’s a look at what analysts said post their June quarter results:
Goldman Sachs
The brokerage has a “sell” rating on Laurus Labs and has raised its target price to ₹675 per share from ₹600 apiece.It said the pharma company’s first quarter sales and earnings before interest, taxes, depreciation and amortisation (EBITDA), which increased 31% and 124%, respectively, were above the brokerage’s estimate and consensus. The same were driven by robust growth in the contract development and manufacturing organisation (CDMO) and finished doses form (FDF) businesses.
Laurus Labs’ EBITDA margin improved to 24.3%, which was up 1,002 basis points from the previous year, on the back of improvements in gross margins and operating leverage, Goldman Sachs said.
While the company did not provide quantitative guidance for the financial year 2026, the management mentioned that they have laid strong foundations for the fiscal and beyond, the brokerage said.
The management also expects margins to improve further in FY26, driven by an uptick in asset utilisation, mix improvement and productivity gains, Goldman Sachs added.
Jefferies
Jefferies has an “underperform” rating on Laurus Labs but has raised its price target to ₹590 per share from ₹480 apiece.
It said the pharma company’s first quarter earnings were ahead of estimates on account of higher antiretroviral (ARV) and CDMO sales.
The management commentary indicated the declining gross margin trend and was non-committal on the sustainability of current sales run-rate, Jefferies said.
Laurus Labs’ ARV division, which accounts for 40% of sales, will face tender renewals from October 2025 onwards, which often leads to price erosion while alternate therapies are gaining steam, it added.
Kotak Institutional Equities
The brokerage has a “sell” rating on the stock and has raised its price target to ₹555 per share from ₹475 apiece.
It said Laurus Labs delivered a strong performance in the first quarter. It was led by another robust quarter in the CDMO division, which grew 7% sequentially. Its 13% EBITDA increase also beat estimates, the brokerage said.
Laurus Labs continues to invest in new technologies and capacities to augment its CDMO offering, based on higher customer offtake visibility, it said.
Aided by macro tailwinds and uptick in supply quantities, Kotak Institutional Equities has forecast that that Synthesis sales could grow at a Compounded Annual Growth Rate (CAGR) of 35% over financial year 2025-2028.
It said the stock is 58 times its financial year 2027 price-to-earnings and the brokerage believes that the long-anticipated earnings recovery is fully factored in.
Shares of Laurus Labs hit a fresh 52-week high of ₹858 apiece on Monday, July 28. The shares were trading 2.51% higher at ₹857.65 apiece at 9.30 am on Monday, July 28. It has gained 18.36% in the past month, 67.98% in the last six months and 39.04% this year, so far.
Also Read: Amber Enterprises to acquire controlling stake in Israel-based Unitronics for ₹404 crore
