This Multibagger Pharma Stock Rises 129% in 1 Year: What Is Powering the CDMO Rally?

This multibagger pharma stock has more than doubled investor money in the past twelve months, turning Rs 1 lakh into roughly Rs 2.29 lakh. One Hyderabad-based drug maker delivered a 1-year return of 129.01% as of 10 September 2026, ranking seventh in a screen of 101 large-cap and mid-cap NSE shares.

The company is Laurus Labs Ltd (NSE: LAURUSLABS), a maker of active pharmaceutical ingredients, finished generic medicines and contract manufacturing services for global drug innovators. The Laurus Labs share price moved from approximately Rs 847 a year ago to around Rs 1,940 on 10 September 2026, and the company is now valued at approximately Rs 1,04,456 crore, ahead of several older pharma names.

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Which Multibagger Pharma Stock Rose 129% in 1 Year?

Laurus Labs is the multibagger pharma stock that rose approximately 129% in one year, placing it seventh out of 101 screened NSE stocks. The Laurus Labs share price traded near Rs 1,940 around midday on 10 September 2026, up about 0.2% from the previous close of Rs 1,937.

The multibagger pharma stock sits just below its 52-week high of Rs 1,955 and far above its 52-week low of Rs 823.10. Here is how the share has performed across time frames in our screen:

Period	Return (%)	Rank (out of 101)
1 Month	4.24%	48
6 Months	89.70%	8
1 Year	129.01%	7
3 Years	389.40%	9
5 Years	212.72%	35

Returns are simple price changes and are not annualised. The 6-month and 3-year ranks show the rally has been broad based, while the 1-month return of 4.24% suggests the pace has cooled after a very steep run. No stock split or bonus issue took place in the multibagger pharma stock during the period, so the 129% figure reflects genuine price appreciation.

The lower 5-year rank has a clear reason. The multibagger pharma stock peaked during the pandemic boom, then corrected hard as FY24 profit dropped to Rs 168 crore. Most of the recent wealth creation happened after that reset.

Why Did This Multibagger Pharma Stock Rise 129%?

This multibagger pharma stock rose 129% because its business mix shifted towards high-margin contract manufacturing, which lifted profits far faster than revenue. Record quarterly results, rising margins, a larger capex plan and index inclusion then pulled in fresh institutional money.

1. CDMO Business Became the Growth Engine

Laurus Labs runs a contract development and manufacturing (CDMO) business that makes molecules for global drug innovators. Quarterly CDMO revenue has climbed from around Rs 220 to 250 crore two years ago to approximately Rs 870 crore in Q1 FY27, and small-molecule CDMO sales grew about 69% year on year.

CDMO now contributes around 43% of total revenue, up from about 13% six years ago. The company has more than 125 active CDMO projects, with roughly 55% of that business already commercial, and management targets about half of revenue from CDMO by FY30. This shift is the core reason the market re-rated the multibagger pharma stock.

2. Record Q1 FY27 Results and Margin Expansion

For Q1 FY27, Laurus Labs reported revenue from operations of Rs 2,026 crore, up 29% year on year. EBITDA rose about 66% to Rs 644 crore, and the EBITDA margin expanded by roughly 700 basis points to 31.8%.

Net profit more than doubled to approximately Rs 362 crore from Rs 161 crore a year earlier. Gross margin improved to 62.7%, showing that richer contract work, not just volume, is driving the earnings of this multibagger pharma stock.

Metric (Rs Cr)	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	1,580	1,680	1,784	1,823	2,035
EBITDA	393	430	486	524	647
Operating Margin	25.01%	26.02%	27.33%	28.92%	31.95%
Net Profit	161	194	253	282	362
EPS (Rs)	3.02	3.61	4.65	5.17	6.81

Revenue in the table includes other income, so it differs slightly from the reported operating revenue. The pattern is clear: profit has risen for five straight quarters, and the operating margin has widened every quarter. That steady climb is what investors in a multibagger pharma stock look for.

3. A Full-Year Turnaround in FY26

FY26 confirmed the recovery for the multibagger pharma stock. Revenue grew about 23% to approximately Rs 6,868 crore including other income, while net profit jumped 151% to Rs 890 crore from Rs 354 crore in FY25. The full-year operating margin improved to 26.9% from 19.33%.

Cash flow also turned strong, with operating cash flow of about Rs 1,624 crore against Rs 602 crore a year earlier. That funded a large part of the Rs 1,070 crore capex without stretching the balance sheet of the multibagger pharma stock.

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4. Bigger Capex Plan and New Technologies

The management of this multibagger pharma stock raised FY27 capex guidance to Rs 2,000 crore from Rs 1,500 crore. A 400 kilolitre commercial fermentation facility in Visakhapatnam is due for commissioning by the third quarter of FY27, and capacity for commercial-scale peptide manufacturing is also being built there.

The company has also added antibody drug conjugate (ADC) programmes through in-licensing deals and a cell therapy platform with more than 660 infusions completed. These give the multibagger pharma stock exposure to newer, faster-growing parts of global drug development.

5. MSCI Inclusion and Market Cap Milestones

In its August 2026 review, MSCI added Laurus Labs to the MSCI India Standard Index. Inclusion usually brings passive buying from global funds that track the index, which supported the multibagger pharma stock through August.

In late July 2026 the multibagger pharma stock also crossed Dr Reddy's Laboratories in market value, becoming the eighth most valuable listed pharma company in India. The share had risen about 97% from its 2 February 2026 low of Rs 913.25 by then.

How the Multibagger Pharma Stock Moved Through 2026

The rally came in clear stages tied to results and news flow. The table below tracks key price milestones for this multibagger pharma stock over the year.

Date	Event	Price Level
Sep 2025	Start of the 1-year period	Approximately Rs 847
2 Feb 2026	2026 low before the rally	Rs 913.25
4 May 2026	Record high after Q4 FY26 results	Rs 1,162.70
30 Jun 2026	Best quarterly rally in five years, up 53% in Q1 FY27	Around Rs 1,518
29 Jul 2026	New high after Q1 FY27 results	Rs 1,798
10 Sep 2026	Current level, near the 52-week high of Rs 1,955	Around Rs 1,940

Who Is Buying This Multibagger Pharma Stock?

Foreign institutional investors raised their stake in Laurus Labs from 25.70% in June 2025 to 28.00% in June 2026. Domestic institutions moved up from 11.94% to 13.74% over the same period, while public holding fell from 34.77% to 30.78%.

Shareholder	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Promoters	27.59%	27.59%	27.49%	27.49%	27.47%
FIIs	25.70%	26.16%	26.52%	25.82%	28.00%
DIIs	11.94%	11.73%	12.43%	13.97%	13.74%
Public	34.77%	34.51%	33.56%	32.71%	30.78%

Shares moving from retail to institutional hands is a typical feature of a maturing multibagger pharma stock. Promoter holding has stayed steady at around 27.5%, which is on the lower side for an Indian pharma company but has not changed through the rally.

The balance sheet remains comfortable. Debt to equity stands at around 0.48, and net debt to EBITDA has improved to about 1.3 times, giving the multibagger pharma stock room to fund its expansion.

Key Risks Before Buying This Multibagger Pharma Stock

The biggest risk for this multibagger pharma stock is valuation. Laurus Labs trades at a PE of approximately 96 and a price to book of about 19.7, against an industry PE of around 38. Return on equity is approximately 16.8%, healthy but not high enough on its own to justify that premium.

Client concentration in CDMO: The CDMO business of this multibagger pharma stock depends on a limited number of large innovator clients. A single project delay, a failed clinical trial or a lost contract could dent quarterly growth sharply.

Lumpy revenue: Bio CDMO revenue fell about 46% quarter on quarter in Q1 FY27, and API sales dropped 15% sequentially. CDMO revenue can swing between quarters, and a soft quarter could hit a share priced for perfection.

Execution on capex: The Rs 2,000 crore FY27 spend must be commissioned on time and filled with orders. Delays in the fermentation or peptide plants would push back the returns the market already expects from this multibagger pharma stock.

Regulatory risk: Like every Indian drug maker, Laurus Labs faces US and European inspections. Any adverse observation at a major site could affect supplies and investor sentiment quickly.

Momentum cooling: The 1-month return of 4.24% ranks only 48th in our screen, which shows the multibagger pharma stock is now consolidating after a steep run rather than accelerating.

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Laurus Labs Share: Analyst View

The analyst view on the Laurus Labs share turned more bullish after the Q1 FY27 results. Brokerages raised earnings estimates for the multibagger pharma stock on the back of stronger CDMO growth and margin guidance, with one domestic brokerage lifting its FY27 and FY28 earnings estimates by 21% and 16% and projecting a 24% earnings CAGR over FY26 to FY28.

Another domestic brokerage upgraded the stock to an add rating and expects the EBITDA margin to reach about 30% by FY28. Analysts tracking this multibagger pharma stock now watch three things: the pace of CDMO commercial launches, margin sustainability above 30% and on-time commissioning of the Visakhapatnam capacity.

Laurus Labs Share Price Target

After the Q1 FY27 results, the Laurus Labs share price target from one domestic brokerage was Rs 1,980, based on 65 times forward earnings. Another domestic brokerage raised its Laurus Labs share price target to Rs 1,990 from Rs 1,020, and a third set Rs 1,890.

Parameter	Figure
Laurus Labs Share Price (10 Sep 2026)	Around Rs 1,940
Brokerage Target 1	Rs 1,980
Brokerage Target 2 (revised from Rs 1,020)	Rs 1,990
Brokerage Target 3	Rs 1,890
52-Week High	Rs 1,955
52-Week Low	Rs 823.10

With the Laurus Labs share price already near Rs 1,940, these targets imply limited upside of roughly 2% to 3%, and one target is already below the current price. Unless brokerages revise their numbers upward, the multibagger pharma stock needs fresh earnings upgrades to move meaningfully higher.

A Laurus Labs share price target is an estimate built on assumptions about future orders and margins, not a guaranteed outcome. The 52-week high of Rs 1,955 acts as the nearest resistance, while the July high of Rs 1,798 is a level short-term traders may watch on the downside.

Conclusion

Laurus Labs earned its place as a multibagger pharma stock through a real change in its business, not a short-lived theme. Quarterly profit rose from Rs 161 crore to approximately Rs 362 crore in a year, CDMO grew to 43% of revenue and margins crossed 31%.

The flip side is a PE near 96 and a share price that is already close to most brokerage targets. Existing holders can track CDMO order flow and capex execution each quarter, while new investors may prefer staggered entries and a clear stop loss rather than chasing the multibagger pharma stock near its 52-week high.

Frequently Asked Questions

Which multibagger pharma stock rose 129% in 1 year?

Ans. Laurus Labs (NSE: LAURUSLABS) is the multibagger pharma stock that gained approximately 129.01% over one year as of 10 September 2026. It ranked seventh among 101 large-cap and mid-cap NSE stocks screened for this analysis.

Why did Laurus Labs share price rise so much?

Ans. The Laurus Labs share price rose mainly because its contract manufacturing business grew fast and lifted margins. Q1 FY27 net profit more than doubled to approximately Rs 362 crore, the EBITDA margin reached 31.8% and MSCI added the stock to its India Standard Index in August 2026.

What were Laurus Labs Q1 FY27 results?

Ans. Laurus Labs reported Q1 FY27 revenue from operations of Rs 2,026 crore, up 29% year on year. EBITDA rose about 66% to Rs 644 crore and net profit climbed to approximately Rs 362 crore from Rs 161 crore a year earlier.

Is this multibagger pharma stock overvalued?

Ans. On trailing numbers the valuation is stretched, with a PE of approximately 96 against an industry PE of around 38. Investors are paying for future CDMO growth, so any slowdown in orders or margins could lead to a sharp correction.

What is the 52-week high and low of Laurus Labs?

Ans. Laurus Labs has a 52-week high of Rs 1,955 and a 52-week low of Rs 823.10 on NSE. The multibagger pharma stock traded near Rs 1,940 on 10 September 2026, just below that high.

Have FIIs increased their stake in Laurus Labs?

Ans. Yes, foreign institutional investors raised their holding in this multibagger pharma stock from 25.70% in June 2025 to 28.00% in June 2026. Domestic institutions also rose from 11.94% to 13.74%, while promoter holding stayed near 27.5%.

What is the Laurus Labs share price target?

Ans. Recent domestic brokerage targets for Laurus Labs range from Rs 1,890 to Rs 1,990, set after the Q1 FY27 results. With the share near Rs 1,940, that implies little upside, and targets are estimates rather than guarantees.

Should I buy a multibagger pharma stock after a 129% rally?

Ans. After a 129% rise, much of the good news is already priced in, so fresh buyers face higher valuation and volatility risk. Staggered buying, a clear stop loss and a check on quarterly CDMO growth are sensible, and consulting a SEBI-registered advisor is recommended.