Laurus Labs set for 30% upside; shares gain 4% on Motilal Oswal ‘buy’ call

Shares of Laurus Labs Ltd</a> gained more than 4% on Friday, March 20, after Motilal Oswal Financial Services (MOSL) reiterated its ‘buy’ rating on the stock.

Motilal Oswal sees more than 30% upside from the stock's current trading levels, setting a target price of ₹1,280 apiece.

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.

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The 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.

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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.