Motilal Oswal Recommends To 'Buy' This Healthcare Stock For +43% Returns, In 1 Year

Brokerage firm Motilal Oswal has recommended investors to buy Laurus Labs's stocks with a potential upside of +43%, within a target period of 12 months.

Target Price

The Current Market Price (CMP) of Laurus Labs is Rs. 482. The brokerage firm, Motilal Oswal has estimated a Target Price for the stock at Rs. 690. Hence the stock is expected to give a 43% return, in a Target Period of 1 year.

Stock Outlook
Current Market Price (CMP)	Rs. 482
Target Price	Rs. 690
1 year return	43.00%

Company performance

Additionally, Laurus Labs (LAURUS) has agreed to acquire a 26.6% stake in ImmunoACT for a consideration of Rs. 460m, implying an enterprise value of Rs. 1.7b. ImmunoACT currently has four CAR-T cell molecules, with one of them undergoing clinical trials. CAR-T cell is a new therapy for Leukemia/Lymphoma, with USD 1.5b in worldwide sales of five commercialized products. The brokerage firm mentioned, "Given that ImmunoACT products are under development, the commercialization would be subject to a successful clinical outcome. However, this represents LAURUS' entry for a potential CDMO opportunity into a new therapy space over the next 4-5 years."

Comments by Motilal Oswal

Motilal Oswal maintained BUY rating for the stock and said, "We remain positive on LAURUS on the back of a scale-up in CDMO (Synthesis/Biologics), market share gains in the Non-ARV segment, and growth potential in the Non-ARV business. We continue to value LAURUS at 24x 12M forward earnings to arrive at a Target Price of Rs. 690."

About the company

Laurus Labs develops innovative medicines, and they work with the top 10 generic pharmaceutical companies globally. They sell APIs in 56 countries, while their major focus areas include anti-retroviral, Hepatitis C, and Oncology drugs. The company undertakes dedicated R&D in areas that have significant growth potential.

Disclaimer

The above stock was picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

(Also read: 'Buy' This Stock For 15% Returns In 1 Year: Edelweiss Recommends)