Synopsis: Motilal Oswal initiated coverage on Rubicon Research with a ‘Buy’ rating and Rs. 930 target, which is 27% upside from current levels citing strong R&D capabilities, 29% revenue and 43% PAT CAGR outlook, over 30% RoE, and potential 50% upside.
This company is a pharmaceutical company engaged in the development, manufacturing, & commercialization of differentiated formulations is now in the focus after Motilal Oswal gave a ‘BUY’ Target.
With market capitalization of Rs. 12,107 cr, the shares of Rubicon Research Ltd are currently trading at Rs. 730 per share, from its previous close of Rs.744.05 per share. This company was listed on October 16th 2025, listed at a price of Rs. 620.00, which is 27.84% higher than the allotment price.
MOSL Target & Rationale on Rubicon Research
Motilal Oswal has started tracking Rubicon Research, giving it a ‘Buy’ rating with a target price of Rs. 740 per share, up 1.3% from the current levels. In the bull-case scenario, the brokerage expects the stock price to reach Rs. 930, which means it could gain around 27% from its current price.
Rubicon Research is a pharmaceutical company focused on research and development (R&D). It develops and manufactures medicines for both domestic and international markets, particularly the United States, where it has a strong track record of regulatory compliance, a key factor that builds trust with global clients and regulators.
The company’s revenue (sales) increased at a compound annual growth rate (CAGR) of 60% from FY22 to FY25 growing from much smaller levels to around Rs. 1,280 crore. During this same period, its profit after tax (PAT) turned around significantly from a loss of Rs. 67 crore in FY22 to a profit of Rs. 130 crore in FY25.
Between FY25 and FY28, the brokerage expects Rubicon to maintain solid momentum, with revenue growing at 29% annually and profits rising by 43% per year. This strong performance is expected to come from better operational efficiency, new product launches, and a diverse portfolio across multiple therapeutic areas.
Motilal Oswal also highlighted Rubicon’s impressive return on equity (RoE), which is expected to exceed 30%, showing the company’s ability to generate high returns from its shareholders’ funds. Considering these strengths, the brokerage believes Rubicon deserves a premium valuation and has valued it at 35 times its expected one-year forward earnings.
About the company
Rubicon Research Ltd is an India-based, R&D-driven pharmaceutical company focused on developing and manufacturing specialty and generic formulations for highly regulated markets, including the U.S. It operates multiple advanced dosage platforms such as oral solids, liquids, nasal sprays and injectables, supported by two global R&D centres and FDA-approved manufacturing facilities in Ambernath and Satara.
Rubicon Research posted robust YoY performance in Q2 FY26, with sales up to Rs. 412 crore from Rs. 352 crore in Q1FY26 and Rs. 296 crore in Q2FY25, EBITDA up 53% to Rs. 94.3 crore from Rs. 61.7 crore last year, and net profit up 56% to Rs. 53.8 crore from Rs. 34.5 crore over the same period. EPS rose 54% to Rs. 3.49 from Rs. 2.27
The company reports a ROCE of 26.2% and ROE of 29.0%, with a debt-to-equity ratio of 0.88. It has delivered a strong 23% profit CAGR over the last five years. Operational efficiency has improved, with debtor days reducing from 143 to 92, and working capital days declining from 59.3 to 45.8.
Written by Manideep Appana
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