LAURUSLABS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | LAURUSLABS | Market Cap | 52,914 Cr. | Current Price | 980 ₹ | High / Low | 1,141 ₹ |
| Stock P/E | 66.1 | Book Value | 91.1 ₹ | Dividend Yield | 0.12 % | ROCE | 9.47 % |
| ROE | 7.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,017 ₹ | DMA 200 | 879 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | 0.70 % | PAT Qtr | 175 Cr. | PAT Prev Qtr | 216 Cr. |
| RSI | 41.0 | MACD | -26.0 | Volume | 19,65,321 | Avg Vol 1Wk | 19,78,167 |
| Low price | 512 ₹ | High price | 1,141 ₹ | PEG Ratio | -2.85 | Debt to equity | 0.37 |
| 52w Index | 74.4 % | Qtr Profit Var | 206 % | EPS | 14.8 ₹ | Industry PE | 29.2 |
📊 Laurus Labs presents a mixed outlook for swing trading. The stock trades at ₹980, below its 50 DMA (₹1,017) but above its 200 DMA (₹879), showing medium-term weakness but long-term support. RSI at 41 indicates nearing oversold territory, while MACD at -26 signals bearish momentum. Valuation is stretched with a P/E of 66.1 compared to industry average of 29.2, and ROE/ROCE remain weak. However, strong YoY profit growth (+206%) and institutional accumulation provide short-term positives.
✅ Optimal Entry Price: ₹940–960 (support zone, better risk-reward).
🚪 Exit Strategy (if already holding): Consider exit near ₹1,050–1,080 (resistance zone close to 50 DMA). If price falls below ₹940, use stop-loss to protect capital.
Positive
- 📈 Strong YoY profit variation (+206%).
- 🏦 Institutional buying (FII +0.35%, DII +0.70%).
- 📊 Trading above 200 DMA, showing long-term support.
- 💹 EPS of ₹14.8 adds stability.
Limitation
- ⚠️ High P/E (66.1 vs industry 29.2).
- 📉 Weak ROE (7.75%) and ROCE (9.47%).
- 📉 Negative MACD (-26) indicates bearish trend.
- 💰 Low dividend yield (0.12%).
Company Negative News
- 📉 PAT declined sequentially (175 Cr. vs 216 Cr.).
- ⚠️ PEG ratio (-2.85) reflects poor earnings growth relative to valuation.
Company Positive News
- 📈 Strong YoY profit growth (+206%).
- 🏦 Increased institutional stake signals confidence.
Industry
- 🏭 Pharma sector average PE is 29.2, Laurus Labs trades at a premium.
- 📊 Sector rotation may favor defensive pharma stocks, but valuation gap is wide.
Conclusion
⚖️ Laurus Labs is a moderately suitable candidate for swing trading. Entry near ₹940–960 offers better risk-reward, while exits should be targeted near ₹1,050–1,080. High valuation and weak return ratios limit upside, but institutional buying and profit growth provide short-term support. Traders should remain cautious and apply strict stop-loss discipline.