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Motilal Oswal Predicts 70% Upside for Molbio Diagnostics in Bull Case
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CNBC TV18•05-10-2026, 12:11
Motilal Oswal Predicts 70% Upside for Molbio Diagnostics in Bull Case
- •Motilal Oswal initiated coverage on Molbio Diagnostics with a "Buy" rating and a base case target price of ₹1,800, implying a 19% upside.
- •The brokerage's bull-case scenario projects a target price of ₹2,575, indicating a significant 70% upside from Friday's close, driven by faster sales growth, sharper margin expansion, and a higher valuation multiple.
- •Molbio Diagnostics debuted on August 17 at ₹980, a 21.44% premium to its IPO price of ₹807, and had already doubled from its issue price within 21 days of listing.
- •Motilal Oswal expects Molbio's revenue to grow at a 23% CAGR and EBITDA and PAT at 38% and 50% CAGR respectively over FY26-29, primarily driven by its TrueNat platform.
- •Key growth drivers include the TrueNat platform, expansion into HPV testing, and digital pathology through OptraSCAN and imaging via Prognosys, though dependence on government orders and elevated working capital are identified risks.
Key Questions Answered
Motilal Oswal established a bull-case target price of ₹2,575 for Molbio Diagnostics, which implies a potential upside of about 70% from the stock's closing price.
Molbio Diagnostics debuted on the stock market on August 17, listing at ₹980 on both the NSE and BSE, representing a 21.44% premium over its IPO price of ₹807.
The portable, battery-operated TrueNat molecular diagnostics platform is central to Molbio's business, accounting for around 90% of its fiscal 2026 revenue.
