LAURUSLABS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

Here’s a full-spectrum analysis of Laurus Labs Ltd (LAURUSLABS)

📊 Core Financials

Profitability: ROE at 7.45% and ROCE at 9.15% are modest — below industry averages.

Quarterly PAT: Dropped from ₹233 Cr to ₹162 Cr, but YoY profit surged 1,192% due to a low base — a sharp rebound.

Debt Profile: Debt-to-equity ratio of 0.62 — moderate and manageable.

Cash Flow: Not disclosed, but improving margins and earnings suggest operational recovery.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 97.0 Extremely high — pricing in future growth

P/B Ratio ~11.0 Rich valuation — market optimism

PEG Ratio -3.57 Negative PEG — unreliable due to earnings volatility

EPS ₹9.43 Moderate earnings base

🧠 Business Model & Competitive Edge

Core Segments: Strong presence in CDMO (Contract Development & Manufacturing), APIs, and formulations.

Growth Drivers: CDMO and Finished Dosage Forms (FDF) segments are fueling margin expansion

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Innovation: Focus on custom synthesis and high-value NCEs (new chemical entities) — long-term moat.

Global Reach: Diversified client base across pharma majors and geographies.

📈 Technical & Sentiment Indicators

RSI (89.6): Extremely overbought — caution warranted.

MACD (45.3): Strong bullish momentum.

DMA Levels: Trading well above 50-DMA and 200-DMA — overheated zone.

🏁 Entry Zone & Long-Term View

Entry Zone: ₹750–₹780 — closer to 50-DMA and safer valuation.

Holding Guidance: Long-term potential exists due to CDMO growth and margin expansion. However, current valuation is stretched and technicals suggest a pullback. Accumulate on dips.

Brokerages are split: Goldman Sachs and Jefferies maintain “Sell” ratings, citing valuation concerns

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, while Motilal Oswal and Choice Equities see upside, with targets up to ₹1,025

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Want a breakdown of its CDMO pipeline or a comparison with peers like Divi’s Labs or Syngene?

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Zee Business

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Mint | MSN

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CNBCTV18

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