Laurus Labs Stock Rallies 4% for Second Straight Day, Hits New High

Laurus Labs’ CDMO Bet Takes Centre Stage as Shares Set a Record

A sharp two-day advance reflects rising expectations for earnings and a major shift in the company’s projected business mix.

A new high in a subdued market

Laurus Labs rose as much as 4% to ₹2,137 on the BSE in Tuesday’s intraday trade, setting a new high. At 2:32 p.m., it was up 3.6% at ₹2,133.15, while the Sensex was down 0.44%. The stock had gained 8% over the preceding two trading sessions, and combined trading volume on the NSE and BSE reached 3.65 million shares—about 1.5 times the average.

The divergence from the broader market points to company-specific interest, with expectations of strong earnings cited as a factor. However, a record price and heavier turnover show increased trading activity, not proof that future earnings will meet investor expectations. The supplied information does not provide a new earnings result or guidance update.

Foreign ownership rises as domestic holdings ease

Foreign portfolio investors increased their holding for a second consecutive quarter, to 30.8% in the September 2026 quarter from 28% at the end of June and 25.8% at the end of March. They became the company’s largest shareholder group, according to the shareholding data cited.

Domestic institutional investors’ stake fell to 11.9% from 13.7% in the June quarter and 14% in the March quarter. Public shareholding, excluding FPIs and DIIs, declined for a fourth straight quarter, reaching 29.9% from 30.8% in the previous quarter. These changes describe who held the shares at quarter-end; they do not, by themselves, establish why each group changed its position or predict the next move in the stock.

CDMO forecasts underpin the longer-term case

The business outlook attracting attention includes a substantial investment cycle. Laurus Labs has already invested ₹4,300 crore in its business, with more than ₹3,000 crore of capex ongoing. That scale of spending creates the possibility of expanding capacity, but also makes the timing and returns from new assets important to the investment case.

Nuvama Institutional Equities forecasts CDMO revenue will grow 3.4 times to ₹7,160 crore by FY29E, contributing more than half of revenue. It expects the business mix to support an EBITDA margin profile near 35%. These are brokerage estimates, not confirmed outcomes; investors will need to track whether demand, capacity utilisation and delivery progress support them.

Peptide opportunity comes with execution demands

Nuvama also points to Laurus Labs’ peptide facility, which it says is expected to open soon. The brokerage sees a revenue opportunity of ₹1,000 crore to ₹1,600 crore at a 35% margin. It initiated coverage in October 2026 with a Buy rating and a target price of ₹2,520 per share.

The same forecasts envisage return on equity rising to 23.3% by FY29E from 16% in FY26, with improvement driven by margins. Nuvama expects free cash flow to improve sharply after FY27E as the capex cycle peaks. That outlook makes execution and the conversion of investment into operating performance central considerations, particularly while the spending programme remains in progress.

Key Highlights

• Laurus Labs touched ₹2,137 intraday, gaining 8% over two sessions.
• Trading volume was about 1.5 times average, with 3.65 million shares changing hands across exchanges.
• FPI ownership rose to 30.8% in the September 2026 quarter; DII and other public holdings declined.
• Nuvama projects CDMO revenue of ₹7,160 crore by FY29E and sees a substantial peptide opportunity.
• The growth outlook depends on capex execution and remains a brokerage forecast, not company guidance.

Investor Note: The record high and rising FPI stake may reinforce positive sentiment, but neither guarantees that projected growth will materialise. Investors should assess Laurus Labs’ execution, returns from its ongoing capex and progress towards the forecast CDMO and margin targets, while considering the risks of buying after a sharp rally.