Laurus Labs shares fell 0.50 per cent to ₹929.75 on Friday at 11.50 am, trading below its opening price of ₹943, despite the pharmaceutical company reporting better-than-expected second-quarter results the previous day. The stock traded in a range of ₹902.35 to ₹943 with 69.76 lakh shares changing hands, valued at ₹642.57 crore, indicating high investor activity. The stock closed at ₹934.40 in the previous session.
Analyst opinions remain sharply divided on the company’s valuation following its Q2FY26 results. Motilal Oswal maintained a Buy rating with a target price of ₹1,110, citing an earnings upcycle driven by ARV recovery, CDMO scale-up, and operating leverage. The brokerage raised its earnings estimates by 11 per cent/10 per cent/6 per cent for FY26/FY27/FY28 and expects a 50 per cent earnings CAGR over FY25-28. DAM Capital also maintained Buy with a ₹1,083 target price, highlighting strong EBITDA performance and CDMO traction. CIE maintained its Buy rating with a target of ₹1,085.
However, foreign brokerages were more cautious about the stock’s premium valuation. Goldman Sachs maintained a Sell rating with a ₹775 target price, while Kotak Securities issued a Sell recommendation at ₹625, noting that valuations remain untenable despite the positive quarter. Jefferies maintained Underperform with a ₹700 target, expressing concerns about a long investment phase ahead due to the company’s announced $600 million capex over eight years for a new Vizag site.
Laurus Labs delivered a 6 per cent/18 per cent/38 per cent beat on revenue/EBITDA/PAT expectations in Q2FY26, with revenue growing 35.1 per cent year-on-year to ₹16.5 billion. EBITDA margin expanded 980 basis points year-on-year to 24.4 per cent, driven by better operational efficiency and improved gross margins. The synthesis business grew 58 per cent year-on-year while formulation sales also surged 58 per cent year-on-year to ₹5.2 billion.
Published on October 24, 2025
