B&K Securities has initiated coverage on Laurus Labs with a buy rating and a target price of ₹1,030 per share, citing the company’s transformation into a contract development and manufacturing organisation (CDMO)-led growth story. The brokerage said Laurus is entering a new growth phase as its CDMO business becomes the key earnings driver over the medium term.
According to B&K, disruptions in the antiretroviral (ARV) segment are largely behind, setting the stage for a steady recovery in the core formulations and API businesses. The brokerage expects consistent growth momentum ahead, supported by a stronger order pipeline and improved demand visibility in the CDMO vertical.
B&K believes Laurus is well-positioned to capitalise on long-term structural opportunities in the global pharmaceutical outsourcing space, driven by cost advantages, manufacturing expertise, and established customer relationships. It added that the company’s expanding capabilities across synthesis, biologics, and specialty APIs will further enhance its margin profile.
Alert: Laurus Labs is scheduled to release its Q2FY26 results today.
Disclaimer: The views and recommendations above are those of B&K Securities. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
