Laurus Labs Q2 Review: Healthy Momentum In CDMO, FDF; Earnings Upcycle Intact — Motilal Oswal Maintains 'Buy'

The non-ARV formulation sales have witnessed a healthy scale-up QoQ, fueled by newer introductions and higher off-take of existing products. Laurus Labs has shown encouraging performance in the ARV segment, led by higher volumes of products sold during the quarter..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.Laurus Lab Ltd. delivered yet another better-than-expected quarter with a 6%/18%/38% beat on revenue/Ebitda/PAT. Higher formulation sales (finished dosage form; backed by robust antiretroviral revenue), a superior mix in the contract development manufacturing organisation segment, and improving operating leverage led to a strong Q2 FY26 performance.Along with improving traction in the human health CDMO segment, the company has invested in manufacturing assets for the animal health and crop science aspects of the CDMO segment. In fact, the validation batches for certain products in the animal health segment are ongoing, with scale-up likely from FY27. The non-ARV formulation sales have witnessed a healthy scale-up QoQ, fueled by newer introductions and higher off-take of existing products.  Laurus Labs has shown encouraging performance in the ARV segment, led by higher volumes of products sold during the quarter.We raise our earnings estimates by 11%/10%/6% for FY26/FY27/FY28, factoring in-improved ARV prospects,steady pick-up in CDMO projects, andhigher generics business backed by CMO opportunities.We expect a 50% earnings CAGR over FY25-28 and value Laurus Labs at 58x 12M forward earnings to arrive at our target price of Rs 1,110. Reiterate Buy.Click on the attachment to read the full report:.Colgate Q2 Review: Motilal Oswal Maintains 'Buy' Despite Muted Show, Sees 25% Upside — Here's Why.DISCLAIMERThis 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.

Laurus Labs Q2 Review: Healthy Momentum In CDMO, FDF; Earnings Upcycle Intact — Motilal Oswal Maintains 'Buy'

Motilal Oswal maintains 'Buy' on Laurus Labs, sees upto 19% upside potential.

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