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Jefferies Names Molbio Diagnostics a 'High-Conviction Top Pick' with Significant Upside
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CNBC TV18•30-09-2026, 09:53
Jefferies Names Molbio Diagnostics a 'High-Conviction Top Pick' with Significant Upside
- •Global investment bank Jefferies initiated coverage on Molbio Diagnostics with a "buy" rating and a price target of ’1,600, implying a 27% upside.
- •Molbio Diagnostics, since its August 17 listing, saw shares double within 20 days but has since corrected 25% from its post-listing high.
- •The company's TrueNat platform, a portable molecular diagnostics system, contributed 86% of FY26 sales and has significant growth potential.
- •Molbio is expanding beyond TrueNat with Prorad (portable X-ray) and Optrascan (digital pathology), indicating a robust innovation pipeline.
- •Jefferies projects Molbio's revenue to grow at a 22% CAGR and PAT at a 47% CAGR over FY26-29, driven by TrueNat expansion and new product rollouts.
Key Questions Answered
Jefferies initiated coverage on Molbio Diagnostics with a "buy" rating and a price target of ₹1,600, indicating an upside potential of 27% from current levels. In an upside scenario, the firm sees a price target of ₹1,970.
The TrueNat platform contributed 86% of Molbio Diagnostics' financial year 2026 sales. This ultra-portable, battery-operated molecular diagnostics platform has a significant growth runway ahead compared to its peers.
Molbio's revenue is projected to grow at a 22% CAGR driven by TrueNat expansion, Prorad portable X-rays, and Optrascan commercial rollouts. Margins are expected to expand by 830 basis points as test-kit capacity utilization rises and employee costs decline.
