Shares of Molbio Diagnostics surged 3% to ₹1,558.3 after Motilal Oswal issued a 70% upside target, projecting FY29 revenue of ₹2,700 crore.
Motilal Oswal’s research note projects a 23% compounded annual growth rate for revenue between FY26 and FY29, taking the company’s FY26 revenue of ₹1,445.7 crore to ₹2,700 crore by FY29.
The note also projects EBITDA of ₹840 crore and PAT of ₹570 crore for FY29, implying EBITDA and PAT CAGR of 38% and 50% respectively over the same period.
In terms of valuation, the base case applies a 45‑times 12‑month forward P/E, a 20% premium to the sector multiple of 36×, while the bull case lifts the multiple to 50× and assumes a 1,465‑basis‑point margin expansion.
TrueNat, the portable molecular platform, accounts for roughly 90% of FY26 revenue and is expected to grow at 16% CAGR through 2029, supported by higher utilisation and new indication launches. The shift toward recurring test‑kit sales, which made up 72% of FY26 revenue, is also a key growth lever.
Risks highlighted include dependence on government orders and elevated working‑capital requirements. Analysts across the board maintain a ‘Buy’ stance, with Motilal Oswal’s 70% upside target leading the pack.