Goldman Sachs has maintained its sell rating on Laurus Labs with a target price of ₹775 per share following a strong Q2FY26 performance that surpassed estimates across key metrics. The company reported a 35% year-on-year rise in sales and a 126% jump in EBITDA, with EBITDA margins expanding 239 basis points to 24.4%.
The brokerage acknowledged that the quarter’s performance was solid and reflected recovery in core operations, supported by strong execution. However, Goldman Sachs believes that much of this strength is already factored into valuations and remains cautious on the near-term outlook due to the company’s heavy capital expenditure cycle.
Management’s focus remains on improving asset turnover, targeting 1.1x in the next 24 months, which the brokerage said would be key to sustaining returns on the planned investments. While Laurus continues to execute well in CDMO and API segments, Goldman Sachs maintained that valuations leave limited upside from current levels.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
