Shares of Laurus Labs surged over 6% intraday in early trade on Monday, May 4, to hit their 52-week high mark after D-Street brokerages maintained a bullish stance as the pharmaceutical major reported a strong performance during the January-March quarter for fiscal 2025-26 (Q4FY26) driven by CDMO-led growth volumes. According to NSE data, the stock trades at its highest price in the last one year as brokerages such as HDFC Securities and Choice Institutional Equities hiked the target price for Laurus post Q4 results, driven by the CDMO-led growth volumes and robust consistency across business segments.
On Monday, shares of Laurus Labs opened at Rs 1,102.20 and surged over 6% to hit an intraday and 52-week high of Rs 1,169.80 apiece on the NSE after bullish outlook from domestic brokerages. Shares last traded 5.98% higher at Rs 1,166.30 apiece on the NSE. Shares of Laurus Lab have gained 11.23% in one month, 5% on a year-to-date basis, and 87% in the last one year. The pharma company commands a market cap of Rs 62,936.48 crore, according to stock exchange data.
Laurus Labs intraday share price
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Brokerages bullish on Laurus Labs - Target Price Hiked
HDFC Securities has maintained a 'buy' call on the stock and changed the target price. Analysts expect volume-led growth for Laurus Labs, supported by a steady performance in the north and east India, scale-up in suburban in the west, and combination of organic expansion as well as M&As in the south. ''This is supported by a steady price environment. We reiterate BUY with a revised TP of Rs 1,720, based on 42x FY28E EPS,'' said the brokerage.
Choice Institutional Equities believes Laurus Labs is strategically transitioning towards a CDMO-led model, targeting 50% revenue contribution by FY29E. Growth is expected across segments: Generics supported by recovery, higher volumes, improved utilisation and oncology scale-up, while CDMO growth will be driven by increased order inflows from large players, commercialisation and a focus on high-complexity offerings. It has hiked the target price from Rs 1,140 to Rs 1,255.
''The evolving product mix, with higher CDMO contribution, is anticipated to support margin expansion. However, profitability may see slower growth due to elevated capex. We revise FY27/28E estimate downwards by 7.0%/7.8%. We value the company at 50x FY28E EPS, arriving at a revised TP of Rs 1,255 (earlier Rs 1,140),'' said Choice Broking.
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Laurus Labs Q4 Results
Laurus Labs reported a 19% year-on-year jump in net profit to Rs 279 crore for the March quarter, with revenue rising 5% to Rs 1,812 crore. The full-year net profit surged 148% to Rs 889 crore, driven by strong growth in its CDMO and Generics divisions. The company also announced an interim dividend of Rs 1.20 per share. On the operating front, EBITDA margin expansion led by favorable product mix and operational leverage. In terms of business mix, the CDMO contribution increased to 33% and generics contribution stands at 67% during the quarter-under-review. The company's long-term investment plan exceeds $600 million.
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