Why Are Analysts Bullish on Laurus Labs With an 18% Upside Potential?
B&K Securities has initiated coverage on Laurus Labs with a ‘Buy’ recommendation and a price target of ₹1,030, implying an 18% upside potential from recent closing levels. The brokerage believes Laurus Labs is entering a new growth phase, driven by its high-margin Contract Development and Manufacturing Organization (CDMO) business and strong visibility in the small molecules segment.
According to the report, Laurus Labs’ CDMO franchise has achieved a sustained 40% revenue CAGR over the past few years, supported by robust demand in custom synthesis and formulation services. The company’s expanding pipeline, capacity additions, and strategic partnerships with global pharmaceutical innovators are expected to fuel its next growth cycle.
Laurus Labs operates across key verticals — Active Pharmaceutical Ingredients (APIs), formulations, and CDMO services. The company’s diversification into biologics, coupled with its backward integration capabilities, provides a significant cost advantage. Analysts see strong growth visibility in both domestic and export markets, particularly in specialty APIs and anti-retroviral drugs.
Looking for consistent performers like Laurus Labs in your trading portfolio? Follow our expert-curated BankNifty Intraday Tip for data-driven sectoral calls and disciplined trade execution strategies.
B&K Securities emphasized that Laurus Labs’ strong research capabilities and focus on innovation underpin its competitive positioning in the CDMO market. The company’s emphasis on developing multi-stage synthesis and scaling high-value molecules is likely to ensure sustainable profitability in the long run.
Laurus Labs — Analyst Highlights and Forecasts
| Metric | Value / Forecast | Remarks |
|---|---|---|
| Target Price | ₹1,030 | Implying 18% upside from current levels |
| Rating | Buy | Initiated by B&K Securities |
| Revenue CAGR (Small Molecules) | 40% | Sustained growth in CDMO and API segments |
| Key Growth Driver | High-margin CDMO | Diversified global client base |
| Outlook | Positive | Strong earnings visibility through FY27 |
With consistent investments in capacity expansion and R&D, Laurus Labs is evolving into a fully integrated global CDMO player. Its strategic focus on value-added services, coupled with entry into biologics and complex molecules, is expected to diversify revenue streams and improve margin resilience.
The brokerage expects Laurus Labs to sustain double-digit earnings growth in FY26 and FY27, led by higher capacity utilization and improved mix of specialty products. Cost optimization, process efficiency, and backward integration in key intermediates further strengthen the margin profile.
Track pharma sector momentum and stay updated on top-performing stocks through our exclusive Nifty Option Tip built for investors who seek precision in short-term swing setups.
Laurus Labs’ healthy balance sheet and expanding client partnerships in regulated markets provide a long runway for growth. The management’s commitment to building long-term CDMO contracts, especially in oncology and complex APIs, enhances revenue predictability. Additionally, its push toward green chemistry and sustainability initiatives aligns with global ESG trends, improving its investment appeal among institutions.
As Laurus Labs transitions into a higher-margin business model, analysts foresee potential re-rating in valuation multiples over the medium term. The stock trades at attractive levels relative to peers, with superior growth visibility and a strong innovation-led moat.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, believes Laurus Labs’ consistent growth in its CDMO segment and strong execution capability make it a compelling long-term story within India’s specialty pharma space. With an 18% potential upside, investors can view current levels as an opportunity to participate in India’s expanding global pharma outsourcing narrative.
Discover more research-backed stock analyses and market insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Laurus Labs
- What Is the Analyst Target Price for Laurus Labs?
- How Is Laurus Labs’ CDMO Business Driving Growth?
- What Is the Revenue CAGR of Laurus Labs’ Small Molecule Segment?
- Is Laurus Labs a Long-Term Investment Opportunity?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
