Gland Pharma, Sun Pharmaceutical, Laurus Labs shares zoom up to 16% to hit 52-week highs; here's why

Shares of pharmaceutical companies such as Gland Pharma Ltd, Sun Pharmaceutical Industries Ltd and Laurus Labs Ltd touched their respective one-year high levels in Monday's trade even as domestic benchmarks were trading lower.

Gland Pharma jumped 15.85 per cent to Rs 2,164.40, while Sun Pharma climbed 1 per cent to Rs 1,896.90. Laurus Labs moved up 0.63 per cent to Rs 1,332.

Here is what select brokerages said on these companies:

Lauras Labs

"Gland Pharma (GLAND IN) reported Q4 FY26 better than our expectations. Revenue was in line with our estimates, while better margin meant EBITDA came 16 per cent ahead of our estimates. PAT was 32 per cent ahead of our estimates, helped by higher Other income. After five consecutive quarters of lackluster performance, Q3 FY26 had shown signs of pickup in growth; momentum further picked up in Q4. The regulated markets business benefitted from new complex product launches and new contracts in old products. Cenexi's remains EBITDA-positive despite posting lower top-line QoQ. Management's topline guidance of 12-13 per cent constant-currency top-line growth in FY27 is in line with our expectations; we find ex-Cenexi EBITDA margin guidance of 33-35 per cent to be conservative. We raise our core EPS estimates by 2-3 per cent during FY27-28. We retain Buy with a higher target price of Rs 2,306," Elara Securities stated.

Sun Pharma

"Sun Pharma has entered into a definitive agreement to acquire Organon & Co (Organon) in an all-cash transaction deal (all outstanding shares). The deal values Organon at an enterprise valuation of $11.75 bn (CY25: EV/sales at 2x and EV/EBITDA at 6x); the transaction is expected to complete in early CY27 (Sun Pharma subsidiary to merge with Organon, which will de-list from NYSE). While Sun Pharma's acquisition of Organon will provide scale (sales/EBITDA/margin of $6.2 bn/$1.9 bn/~30 per cent), growth revival in established brands, cross leverage of Sun's branded generic business, and sustaining growth in Innovative Medicine business with focus on cross-selling and in-licensing remain key. We note the Organon acquisition (1) will be sales/EBITDA/PAT accretive by 80 per cent/82 per cent/27 per cent in FY28, (2) will dilute gross margin by ~960 bps, (3) will increase EBITDA margin by 10 bps in FY28, and (4) will turn Sun Pharma from net cash company ($3.2 bn as of Dec-25) to a net debt company of ~$8 bn; net debt to EBITDA at ~2x (vs. -1.8x) in FY28E. We will factor in Organon after deal closure. We roll forward our TP to Rs 2,030 (31x FY28E EPS; implies 21x EV/EBITDA). Maintain BUY," HDFC Securities said.

Laurus Labs

"Laurus is strategically transitioning towards a CDMO-led model, targeting ~50% revenue contribution by FY29E. Growth is expected across segments: Generics supported by ARV recovery, higher volumes, improved utilisation and oncology API scale-up, while CDMO growth will be driven by increased order inflows from large players, commercialisation and a focus on high-complexity offerings. The evolving product mix, with higher CDMO contribution, is anticipated to support margin expansion. However, profitability may see slower growth due to elevated capex. We revise FY27/28E estimate downwards by 7 per cent/7.8 per cent. We value the company at 50x FY28E EPS, arriving at a revised TP of Rs 1,255 (earlier Rs 1,140)," Choice Institutional Equities said.

The brokerage has maintained its 'Add' rating on the counter.

Separately, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that export-oriented sectors like pharmaceuticals will continue to be resilient in the present context.

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd (MOFSL), stated, "Pharmaceutical stocks are expected to remain in focus going forward, supported by persistent rupee weakness, improving export competitiveness, and continued strength in domestic healthcare demand. The sector is also likely to benefit from its relatively defensive earnings profile amid ongoing global macro uncertainty and rising volatility across broader markets."

Other pharma stocks like Divi's Laboratories Ltd, Wockhardt Ltd, Torrent Pharmaceuticals Ltd, IPCA Laboratories Ltd, Glenmark Pharmaceuticals and Ajanta Pharma were also seen trading higher today.