Target: ₹1,800
CMP: ₹1,543.75
Molbio is a diagnostics technology company built around Truenat, its portable molecular testing platform that enables rapid point-of-care testing (POCT) with minimal infrastructure — bringing molecular diagnostics closer to the patient.
With 12,500+ Truenat devices across 90+ countries, 43 assays covering 30 diseases and a $9.3 billion global POCT infectious-disease market growing at about 23 per cent CAGR, Molbio has a long runway for growth.
We believe 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.
We model a 23 per cent revenue CAGR, 910bp margin expansion, and 50 per cent PAT CAGR over FY26-29E. We assign a 45x 12-month forward earnings multiple to arrive at a target price of ₹1,800. (bull case TP: ₹2,575; bear case TP of ₹1,100). We initiate coverage with a Buy rating.
Key risks are customer concentration, high revenue contribution of TB testing, delays in regulatory approvals and slower-than-expected adoption of Truenat.