A newly listed stock has seen a solid gain of over 80% in less than two months, and despite this sharp rise, domestic brokerage firm Motilal Oswal Financial Services has a “buy” recommendation on it, with a target price implying 20% upside potential.
We are discussing Molbio Diagnostics, a Goa-based healthcare company that develops fast, affordable, and accurate diagnostic tests. Its solutions help detect infectious and non-communicable diseases, making testing more accessible to people.
Molbio Diagnostics share price trend
Molbio Diagnostics share price was listed on the Indian bourses on 17 August this year. At the current market price of ₹1,475.50, it is up 83% from its IPO price of ₹807 in less than two months.
Over the last month, the stock has been up about 27%. On a monthly scale, it is up 13% so far in October after an almost 21% rise in September.
Meanwhile, the stock declined more than 2% in intraday trade on Tuesday, 6 October, looking set to extend losses for the second consecutive session.
Motilal Oswal says buy this stock
Motilal Oswal has initiated coverage on the stock with a buy rating, assigning a 45 times 12-month forward earnings multiple to arrive at a target price of ₹1,800, implying a 20% potential upside from the stock’s 5 October close of ₹1,503.35 on the BSE. In a bull case, the stock could rise to ₹2,575, while in a bear case, it can fall to ₹1,100, according to Motilal Oswal.
Motilal Oswal believes Molbio is “well-positioned to capture the opportunity in decentralised molecular diagnostics via its integrated Truenat ecosystem, combining proprietary molecular diagnostic devices with a recurring test-kit franchise.”
“The expanding installed base, widening assay menu and global scale-up are key levers for sustainable growth, while increasing utilisation should drive operating leverage,” said Motilal.
The brokerage firm added that successful diversification beyond TB, stronger international adoption and improving cash conversion could support a re-rating, while dependence on government orders and elevated working capital remain key risks.
The brokerage firm expects a 23% revenue CAGR, 910 basis points margin expansion, and 50% PAT CAGR over FY26-29E.
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