Kotak Institutional Equities has reiterated a Sell rating on Laurus Labs, while raising the target price to ₹555, implying a sharp downside of approximately 34% from the current market price of ₹839.90.
The brokerage acknowledged a strong Q1FY26 performance, driven by continued strength in the CDMO segment, which grew 7% quarter-on-quarter. This helped Laurus deliver a 13% EBITDA beat versus estimates.
However, Kotak believes that at a valuation of 58x FY2027E P/E, the long-anticipated earnings recovery is already fully factored in, leaving little room for further upside.
Disclaimer: This article is based on Kotak Institutional Equities’ brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
