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Molbio Diagnostics Shares Rise on HDFC MF Deal, Jefferies Buy
HDFC Mutual Fund bought nearly 2% of Molbio Diagnostics in a large stock-market transaction.
Another investor, Business Excellence Trust III, sold a similar number of shares.
After the deal, Molbio’s share price rose more than 5% during Thursday trading.
The company’s shares are up about 71% from their IPO price of ₹807.
Jefferies began covering the company and gave it a Buy rating.
Jefferies set a possible future price of ₹1,600 per share.
The brokerage believes Molbio’s Truenat testing system could grow significantly.
Truenat is a portable machine that can test for diseases without requiring much infrastructure.
HDFC Mutual Fund bought 23 lakh Molbio Diagnostics shares, equivalent to a 1.99% stake, for ₹302.45 crore.
Business Excellence Trust III sold 23.28 lakh shares for ₹306.26 crore, reducing its stake by 2.02 percentage points.
Molbio Diagnostics shares reached an intraday high of ₹1,378.55 on the BSE after opening at ₹1,309.55.
Jefferies initiated coverage with a Buy rating and a ₹1,600 target price.
Jefferies identified Molbio’s Truenat platform and product pipeline as potential long-term growth drivers.
- Who
- Molbio Diagnostics, HDFC Mutual Fund, Business Excellence Trust III, Motilal Oswal Private Equity, and Jefferies.
- What
- HDFC Mutual Fund bought a 1.99% stake in Molbio Diagnostics, while Jefferies initiated coverage with a Buy rating and a ₹1,600 target.
- Where
- The transactions were reported on the BSE; Molbio Diagnostics is based in Goa.
- When
- The bulk deal occurred on 30 September, and Molbio shares rose on Thursday, 1 October.
- Why
- HDFC Mutual Fund purchased the stake, while Jefferies cited Molbio’s Truenat platform, patents, and product pipeline as reasons for its positive outlook.
Positive Investment Signals
Contrasting Stake Sale
Investor positioning
Positive Investment Signals
HDFC Mutual Fund bought a 1.99% stake, indicating a significant investment in Molbio Diagnostics.
Contrasting Stake Sale
Business Excellence Trust III sold 23.28 lakh shares and reduced its stake by 2.02 percentage points.
Share-price outlook
Positive Investment Signals
Jefferies assigned a Buy rating and a ₹1,600 target, citing Molbio’s innovation, Truenat platform, and growth pipeline.
Contrasting Stake Sale
The articles report the stake sale but do not provide a reason for Business Excellence Trust III’s decision to sell.
Platform scale
Positive Investment Signals
Jefferies said Truenat has substantial growth potential and advantages including portability, speed, and lower infrastructure dependence.
Contrasting Stake Sale
Jefferies noted that Truenat generates around $130 million in revenue, compared with roughly $3 billion for GeneXpert.
Key facts
- HDFC Mutual Fund purchase
- 23 lakh shares, or a 1.99% stake
- Purchase value
- ₹302.45 crore at ₹1,315 per share
- Seller
- Business Excellence Trust III, managed by Motilal Oswal Private Equity
- Jefferies rating
- Buy
- Jefferies target price
- ₹1,600 per share
- IPO issue price
- ₹807 per share
- Truenat capabilities
- Supports testing for 30 diseases and is patent-protected in more than 100 countries
Sources
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