⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
LAURUSLABS - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.6
📊 Financial Overview
- Profitability: PAT surged from ₹158 Cr to ₹216 Cr QoQ, marking a 408% jump. EPS stands at ₹12.6.
- Return Metrics: ROE at 7.75% and ROCE at 9.47% are modest, indicating scope for operational improvement.
- Valuation: P/E of 75.5 is significantly above the industry average (33.1), suggesting steep overvaluation.
- P/B Ratio: With a book value of ₹91.1 and price of ₹954, P/B is ~10.47, reflecting a premium valuation.
- PEG Ratio: -3.25 indicates earnings volatility and valuation distortion.
- Debt Profile: Debt-to-equity ratio of 0.37 is moderate and manageable.
- Momentum: RSI at 73.8 and MACD at 22.2 suggest strong bullish sentiment but nearing overbought territory.
🏢 Business Model & Competitive Edge
- Laurus Labs is a pharmaceutical and biotech company focused on APIs, formulations, and contract development and manufacturing (CDMO).
- Its integrated model and scale in antiretroviral APIs offer cost advantages and global reach.
- Expansion into high-margin segments like biotech and CDMO enhances long-term growth visibility.
💡 Entry Zone Recommendation
- Current price is above both DMA 50 (₹884) and DMA 200 (₹743), indicating strong momentum.
- Suggested Entry Zone: ₹900–₹930 on dips for accumulation.
- Long-term holding is viable if margin expansion continues and valuation normalizes.
✅ Positive
- Massive QoQ PAT growth and strong EPS performance.
- FII holdings increased by 0.47%, indicating rising foreign investor confidence.
- Low debt-to-equity ratio supports financial stability.
⚠️ Limitation
- High P/E and P/B ratios suggest valuation caution.
- ROE and ROCE are below top-tier pharma peers.
- PEG ratio is negative, indicating earnings volatility.
📉 Company Negative News
- DII holdings declined by 0.22%, suggesting cautious domestic sentiment.
- RSI above 70 indicates overbought conditions and potential short-term correction.
📈 Company Positive News
- Strong quarterly earnings and margin expansion.
- Momentum indicators show continued investor interest and technical strength.
🏭 Industry
- Pharma and biotech sectors benefit from global healthcare demand, innovation, and regulatory tailwinds.
- Industry P/E of 33.1 supports moderate valuation for growth-oriented players.
🧾 Conclusion
- Laurus Labs is a promising pharma player with strong earnings momentum and strategic expansion into biotech and CDMO.
- Entry near ₹900–₹930 offers a reasonable long-term opportunity, though valuation remains elevated.
- Monitor margin trends and institutional flows for sustained performance.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks