Motilal Oswal has begun coverage on Molbio Diagnostics with a Buy recommendation and a target price of ₹1,800, signalling confidence in the company's ability to capture a larger share of India's and the world's molecular diagnostics market. The target implies an upside of roughly 21% from prevailing levels, according to the brokerage's assessment, and reflects a view that the company's decentralised testing model is gaining structural relevance in healthcare delivery.
The call comes at a time when diagnostics is increasingly being shaped by the need for faster, more accessible and more distributed testing infrastructure. Rather than relying solely on large central laboratories, the market is moving toward point-of-care and near-patient solutions that can deliver molecular results closer to where patients are treated. Motilal Oswal said Molbio is positioned to benefit from this shift through its Truenat platform, which has become the company's core growth engine.
Truenat Growth Engine
Truenat is central to the investment case because it addresses a long-standing gap in diagnostics: the ability to run molecular tests outside high-end laboratory settings without compromising on speed or clinical utility. According to the brokerage, Molbio's platform has more than 12,500 devices deployed across over 90 countries and supports 43 assays covering 30 diseases. That scale gives the company a meaningful installed base, recurring test potential and a broad addressable market across infectious disease screening and other diagnostic categories.
The breadth of the assay menu is particularly important. A wider range of tests increases the platform's utility for hospitals, clinics, public health programmes and laboratories, while also improving the economics of the installed base. For investors, the combination of device penetration and assay expansion is often a stronger signal than a one-time equipment sale, because it can translate into sustained consumables-led revenue over time.
Motilal Oswal's optimism also appears rooted in the broader policy and healthcare backdrop. India's diagnostics market has been evolving rapidly as public health systems, private providers and global buyers seek technologies that can improve turnaround times and expand access in lower-resource settings. Molecular diagnostics, once concentrated in specialised centres, is increasingly being adopted for infectious disease management, screening and surveillance. In that context, a company with a portable, decentralised platform and international reach has a differentiated proposition.
Global Reach, Local Edge
Molbio's footprint across more than 90 countries gives it exposure beyond India, reducing dependence on any single market and opening the door to international demand in emerging economies. That global presence is strategically significant because decentralised diagnostics is not only an Indian healthcare story; it is a broader emerging-market and public-health theme. Countries with limited laboratory infrastructure often need solutions that are rugged, scalable and operationally simpler than conventional molecular systems.
At the same time, the company's Indian base may offer an operational advantage. Domestic demand for affordable, rapid diagnostics remains strong, supported by a large patient pool, disease burden and ongoing healthcare infrastructure expansion. If Molbio can continue to deepen adoption in India while scaling abroad, the brokerage's thesis suggests it could sustain growth across multiple demand channels.
The Buy rating also underscores a market view that Molbio's business model has room to compound as installed devices generate more assay usage. That said, the investment case will likely depend on execution: maintaining product relevance, expanding assay coverage, sustaining regulatory momentum across markets and converting platform adoption into durable revenue growth. In diagnostics, technology leadership can be quickly tested by pricing pressure, competition and procurement cycles.
Still, the brokerage's initiation is a notable endorsement of the company's positioning at the intersection of healthcare access, molecular testing and decentralised diagnostics. The ₹1,800 target indicates that Motilal Oswal sees more value ahead than the market currently assigns, based on the platform's scale, disease coverage and international presence.
For investors tracking India's healthcare and diagnostics space, the note reinforces a broader theme: companies that can move sophisticated testing closer to patients may be among the clearest beneficiaries of the sector's next growth phase. Molbio, through Truenat, is being cast by the brokerage as one of the more compelling names in that transition.