Motilal Oswal said buy this stock, expected to run up to 30%, has given 227% return in 3 years.:The company's stock was trading 4.19% higher at ₹984.50 as of 12:56 pm on Friday. Although the stock has declined 11.17% so far this year, it has returned over 63% over the past 12 months.

News Topical, Digital Desk : Shares of pharma company Laurus Labs Limited saw a strong rally on Friday, March 20. The stock jumped more than 4% after brokerage Motilal Oswal Financial Services (MOSL) reiterated its 'Buy' rating.

The brokerage has given a target of ₹1,280 per share for Laurus Labs, indicating a potential upside of over 30% from current levels.

CDMO business supports growth According to MOSL, the company is strengthening its foothold in the Contract Development and Manufacturing Organization (CDMO) segment. Growing relationships with global innovator pharmaceutical companies and expanding capacity offer strong long-term growth potential.

New contracts and advanced technology: The company has secured formulation-level contracts for patented products, providing multi-year growth visibility. Additionally, Laurus Labs has developed advanced technical capabilities in areas such as peptides, cell and gene therapy, fermentation, and continuous manufacturing.

Focus on capex and new segments

The company is increasing investments in segments such as biologics, animal health, and crop science, which will boost asset utilization and drive new growth opportunities.

Furthermore, the company is expanding its presence in the European and Asia-Pacific markets through a joint venture with KRKA.

Stable earnings from ARV business

According to MOSL, the company's antiretroviral (ARV) business remains robust, with stable prices and growing demand, providing a strong earnings base.

The brokerage estimates Laurus Labs to grow earnings at a CAGR of 16% during FY26-28, driven by CDMO growth, generics expansion, and the ARV business.

Share Performance:

As of 12:56 pm on Friday, the company's stock was trading 4.19% higher at ₹984.50. Although the stock has declined 11.17% so far this year, it has returned over 63% in the past 12 months.

Analysts' Opinion:

According to Bloomberg data, out of 18 analysts, 8 have given 'Buy', 4 have given 'Hold' and 6 have given 'Sell' rating.