Motilal Oswal believes Molbio is well positioned to capture the opportunity in decentralised molecular diagnostics via its integrated Truenat ecosystem, combining proprietary molecular diagnostic devices with a recurring test-kit franchise. The expanding installed base, widening assay menu and global scale-up are key levers for sustainable growth, while increasing utilisation should drive operating leverage.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has initiated coverage on Molbio Diagonistics Ltd. with a Buy rating, implying a 21% potential upside. (Bull case target price: Rs 2,575 | Bear case TP of Rs 1,100).
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The brokerage models a 23% revenue CAGR, 910 basis point margin expansion, and 50% PAT CAGR over FY26-29E.
Nirmal Bang assigns a 45 times 12-month forward earnings multiple to arrive at a TP of Rs 1,800.
Molbio is a diagnostics technology company built around Truenat, its portable molecular testing platform that enables rapid point-of-care testing (POCT) with minimal infrastructure — bringing molecular diagnostics closer to the patient.
Motilal Oswal believes Molbio is well positioned to capture the opportunity in decentralised molecular diagnostics via its integrated Truenat ecosystem, combining proprietary molecular diagnostic devices with a recurring test-kit franchise. The expanding installed base, widening assay menu and global scale-up are key levers for sustainable growth, while increasing utilisation should drive operating leverage.
We believe successful diversification beyond TB, stronger international adoption and improving cash conversion could support a re-rating, while dependence on government orders and elevated working capital remain key risks.
Key risks are customer concentration, high revenue contribution of TB testing, delays in regulatory approvals and slower-than-expected adoption of Truenat.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner. —
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
