Laurus Labs hits 52-week high as strong Q2 results fuel buying
The stock has gained over 139% in the past year and is up 109% year-to-date
Laurus Labs experienced a surge in its stock price on Friday, reaching a fresh 52-week high of ₹2,343, following strong Q2 results that impressed investors. The company's shares climbed 3.81 per cent to ₹2,329.60 on the NSE in early trade, marking a significant increase of over 139 per cent in the past year and 109 per cent year-to-date.
Motilal Oswal, in a note dated October 30, upgraded its rating to Buy and set a revised target price of ₹2,830, indicating a potential upside of about 26 per cent from the previous close of ₹2,244. The brokerage firm cited several factors contributing to the company's growth, including the scale-up of its Contract Development and Manufacturing Organization (CDMO) segment, particularly in peptide manufacturing, a steady rise in affordable medicine supply, and a more favorable segmental mix.
Laurus Labs reported a 33 per cent year-on-year increase in net revenue for Q2 FY27, reaching ₹2,206 crore, up from ₹1,653 crore the previous year. EBITDA improved to ₹750 crore from ₹403 crore a year ago, with net profit nearly tripling to ₹436 crore from ₹194 crore. The company's strong performance was primarily driven by the CDMO small molecules segment, which grew by 86 per cent year-on-year.
The company also announced plans to acquire a 60 per cent stake in Canada-based Galenvs Sciences and a 52 per cent stake in Hyderabad-based SI & C Resins to bolster its oligonucleotide capabilities and peptide manufacturing.
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