LAURUSLABS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | LAURUSLABS | Market Cap | 59,436 Cr. | Current Price | 1,101 ₹ | High / Low | 1,145 ₹ |
| Stock P/E | 80.3 | Book Value | 97.3 ₹ | Dividend Yield | 0.11 % | ROCE | 15.9 % |
| ROE | 15.1 % | Face Value | 2.00 ₹ | DMA 50 | 1,060 ₹ | DMA 200 | 952 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 1.54 % | PAT Qtr | 192 Cr. | PAT Prev Qtr | 175 Cr. |
| RSI | 54.4 | MACD | 20.5 | Volume | 24,48,088 | Avg Vol 1Wk | 19,52,953 |
| Low price | 572 ₹ | High price | 1,145 ₹ | PEG Ratio | -90.2 | Debt to equity | 0.40 |
| 52w Index | 92.3 % | Qtr Profit Var | -23.9 % | EPS | 13.7 ₹ | Industry PE | 30.1 |
📊 Laurus Labs demonstrates moderate fundamental strength with a market cap of ₹59,436 Cr. and current price of ₹1,101, close to its 52-week high of ₹1,145. Efficiency metrics are decent — ROE at 15.1% and ROCE at 15.9% — but valuations remain stretched with a P/E of 80.3 versus the industry average of 30.1. Debt-to-equity at 0.40 is manageable, though the negative PEG ratio (-90.2) highlights weak growth-adjusted valuation. EPS at ₹13.7 is stable, but quarterly profit variation (-23.9%) indicates earnings volatility. Institutional flows are mixed, with FIIs reducing holdings (-0.70%) while DIIs increased (+1.54%).
💡 Entry Zone: ₹1,050–₹1,070 (near 50 DMA support)
📈 Long-Term Holding: Suitable for investors with patience and risk tolerance. Accumulation is better on dips closer to ₹1,000 to mitigate valuation risk.
✅ Positive
- ROE (15.1%) and ROCE (15.9%) reflect improved operational efficiency
- EPS of ₹13.7 shows earnings consistency
- DII holdings increased (+1.54%), signaling domestic institutional confidence
- Debt-to-equity ratio at 0.40 remains within manageable levels
⚠️ Limitation
- High valuation (P/E 80.3 vs industry 30.1)
- Negative PEG ratio (-90.2) indicates poor growth-adjusted valuation
- Quarterly profit variation (-23.9%) highlights earnings volatility
- FII holdings decreased (-0.70%), showing reduced foreign investor interest
📉 Company Negative News
- Volatile quarterly profits with recent decline (-23.9% variation)
- Valuation pressure compared to sector peers
📈 Company Positive News
- PAT improved sequentially (₹175 Cr → ₹192 Cr)
- Stable EPS and consistent revenue base
- Strong support from domestic institutions
🏭 Industry
- Pharma sector trades at lower P/E (30.1), making Laurus Labs relatively expensive
- Sector outlook remains stable with demand visibility in generics and APIs
🔎 Conclusion
Laurus Labs is fundamentally stable but overvalued relative to peers. Efficiency metrics are decent, but earnings volatility and stretched valuations limit upside. Entry near ₹1,050–₹1,070 offers a risk-managed setup. Long-term investors should accumulate only on dips closer to ₹1,000, as current levels carry valuation risk.