Now Reading: Motilal Oswal initiates coverage on Molbio Diagnostics with buy rating
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Motilal Oswal initiates coverage on Molbio Diagnostics with buy rating
Motilal Oswal initiates coverage on Molbio Diagnostics with buy rating
Motilal Oswal Financial Services has initiated coverage on Molbio Diagnostics Ltd with a 'buy' rating and a target price of ₹1,800, implying a 19% upside from its closing price of ₹1,513.10 on 1 October. In a bull-case scenario, the brokerage sees a target of ₹2,575, implying a 70% upside from the close on 9 October.
Molbio Diagnostics listed on 17 August at ₹980, a 21.44% premium to the IPO price of ₹807. The stock had already doubled from its issue price within 21 days of listing, reaching a post-listing high of ₹1,686. Motilal Oswal expects the company's revenue to grow at a 23% CAGR over FY26-29, driven by higher utilisation of its TrueNat platform and expansion into digital pathology and imaging.
All three analysts covering the stock have a 'buy' rating. Motilal Oswal's target is the highest among brokerages, with Jefferies at ₹1,600 and IIFL at ₹1,550. The brokerage identified dependence on government orders and elevated working capital as key risks.
Indian Opinion Analysis
Motilal Oswal's bull case of ₹2,575 is based on aggressive assumptions: 26% revenue CAGR, 1,465 basis points of margin expansion and a 58% earnings CAGR over FY26-29. The brokerage applies a 50-times forward P/E multiple, compared with 45 times in its base case. The key variable is whether the TrueNat platform can sustain high utilisation through new indications such as HPV testing, and whether early-stage businesses like OptraSCAN's US commercialisation gain traction. The stock's 24% rally in three sessions before this note suggests the market had already priced in some optimism.
Source: cnbctv18.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
