2021-07-31 Laurus Labs Ltd. Motilal Oswal 654.50 800.00 654.50
(1.22%) 20.75 Buy

Formulation/Synthesis outshines; API underperforms

Laurus Labs (LAURUS) 1QFY22 earnings missed our expectations. The robust performances in the Finished Dosage Formulations (FDF) and Synthesis segments were more than offset by a muted show in the Active Pharma Ingredients (API) segment. That said, in addition to having an established business in the Anti-Retroviral (ARV) segment, LAURUS is on track to build new levers for future growth in Contract Development and Manufacturing Operations (CDMO) and Non-ARV API/Formulation. We tweak our FY22E/FY23E EPS estimate, factoring in a) moderation in the...

2021-07-30 Laurus Labs Ltd. ICICI Securities Limited

641.50 785.00 641.50
(3.27%) 18.49 Buy 2021-07-06 Laurus Labs Ltd. Motilal Oswal

683.40 800.00 683.40
(-3.06%) 20.75 Buy

Scaling up new levers to accelerate growth

Laurus Labs (LAURUS)s Annual Report Analysis indicates a sharp improvement in ROE, led by a strong head-start in Finished dosage forms (FDF), improving operating profit, and a reduced interest rate. Since its journey from ARV API to a fully integrated pharmaceutical company over FY0621, LAURUS is on the path to strengthening its capabilities/capacity in Contract...

2021-05-01 Laurus Labs Ltd. Motilal Oswal

477.25 550.00 477.25
(38.82%) Target met Buy

Multiple levers to aid growth over next 3 years

LAURUS delivered in line performance in 4QFY21, with highest ever quarterly sales/EBITDA/PAT. Its capacity expansion program for formulation (FDF)/API remains on track. The company continues to make steady progress on building capability as well as capacity in the Synthesis/Biologics segment, which are additional growth levers for the next 4-5 years. We raise our FY22E/FY23E EPS estimate by 6%, factoring in: a) benefit from debottlenecking exercise in FDF, b) capacity build-up in the non-ARV segment, c) better prospects in the Synthesis segment, and d) scale-up in the...

2021-05-01 Laurus Labs Ltd. BOB Capital Markets Ltd.

477.25 540.00 477.25
(38.82%) Target met Buy 2021-04-30 Laurus Labs Ltd. ICICI Securities Limited

452.75 550.00 452.75
(46.33%) Target met Buy

Laurus Labs

Laurus is well poised to follow the success story of some leading CDMO players backed by strong chemistry and integrated model. Elsewhere, formulations are expected to grow amid ramp up and new launches (e.g. TLE400) in LMIC and launches in the US. Other APIs are expected to be driven by a strong order book and capacity addition. Besides continuous improvement in the financial performances, the company is evolving as a strong vertically integrated player with strong order book visibility, improving margin profile, strengthening return ratios and healthy FCF...

2021-01-30 Laurus Labs Ltd. ICICI Securities Limited 345.35 440.00 345.35
(91.83%) Target met Buy

Laurus Labs

Q3 results were above I-direct estimates on all fronts. Laurus is well poised to follow the success story of some leading CDMO players backed by strong chemistry and integrated model. Elsewhere, formulations are expected to grow amid ramp up and new launches (e.g. TLE400) in LMIC and launches in the US. Other APIs are expected to be driven by a strong order book and capacity addition. Besides continuous improvement in the financial performances, the company is evolving as a strong vertically integrated player with strong order book visibility, improving margin profile,...

2021-01-29 Laurus Labs Ltd. BOB Capital Markets Ltd.

345.35 480.00 345.35
(91.83%) Target met Buy 2020-12-22 Laurus Labs Ltd. Sharekhan

353.40 410.00 353.40
(87.46%) Target met Buy

Laurus Labs

Further, the companys foray in the lucrative biologics/biotech space through the acquisition of a majority stake in Richcore Lifesciences would be a key positive as it would create a new revenue stream. We interacted with the management of Laurus Labs Limited (Laurus) and their commentary suggests a robust growth outlook. Laurus formulations business is gaining traction with the tender business, which accounts for around three-fourth of total formulation sales, is witnessing sturdy growth. Moreover, Laurus is expanding capacities, primarily through brownfield expansions to cater to increasing demand. The first leg of de-bottlenecking is...

2020-11-26 Laurus Labs Ltd. Motilal Oswal 316.85 410.00 316.85
(109.09%) Target met Buy

Richcore acquisition - A step towards strategic diversification

Laurus Labs (LAURUS) has acquired 73% stake in Richcore Lifesciences (RICH) for a cash consideration of INR2.5b. The acquisition is a step towards building a vertically integrated biotech segment and adds a new lever to growth. It particularly provides capabilities in high growth areas of Recombinant (Rh)...

2020-11-01 Laurus Labs Ltd. Dolat Capital 291.35 400.00 291.35
(127.39%) Target met Accumulate

Laurus Labs

Laurus reported robust 2Q beating our estimates primarily driven by stellar growth in formulations. Though majority growth is led by ARV tender based opportunities, leveraging its backward integration, Laurus has demonstrated commendable execution capability as the growth is volume led without any one-offs. Management remained confident of growth sustenance in 2H as well. In order to supplement future growth, Laurus has undertaken a massive capex program (Rs12bn) of which Rs5bn is allocated...

2020-10-30 Laurus Labs Ltd. BOB Capital Markets Ltd. 319.40 410.00 319.40
(107.42%) Target met Buy 2020-10-30 Laurus Labs Ltd. Sharekhan 300.85 385.00 300.85
(120.21%) Target met Buy

Laurus Labs

Synthesis and API segments are on track for a double digit growth. Operating leverage, favorable mix to support OPM expansion. Strong growth prospects, visibility on earnings, healthy balance sheet and return ratios are key positives We retain a Buy recommendation with a revised PT of Rs 385. Q2FY2021 was yet another stellar quarter for Laurus Labs Ltd (Laurus). Sales stood at Rs. 1138.8 crore, translating to a sturdy rise of 60% y-o-y on the back of robust growth in the lucrative formulations business and a double digit growth in the generic APIs. Operating margins surprised positively, surging 1351 bps y-o-y to 32.8%, aided by an expansion...

2020-09-29 Laurus Labs Ltd. ICICI Securities Limited 289.20 325.00 289.20
(129.08%) Pre-Bonus/
Split Hold 2020-09-15 Laurus Labs Ltd. ICICI Securities Limited 1340.00 1620.00 1340.00
(-50.56%) Pre-Bonus/
Split Buy 2020-08-19 Laurus Labs Ltd. BOB Capital Markets Ltd. 1063.15 1063.15
(-37.69%) Pre-Bonus/
Split Buy 2020-08-01 Laurus Labs Ltd. Motilal Oswal

933.25 1215.00 933.25
(-29.01%) Target met Buy

Metamorphosis underway

1 August 2020 Laurus Labs (LAURUS) delivered all-time high quarterly PAT at INR1.7b. It is more than average of annual PAT over FY17-20. The company expects this to be sustainable on the back of diversified portfolio, increased customer base, addition of capacity for API/formulation and supported with better operating leverage. After a long wait, the efforts towards product development/building manufacturing base are reflected in the phenomenal financial performance. In fact, 1QFY21 redefines the earnings assessment over near to medium term. Our target PE remains unchanged and target price of INR1,215 at 17x 12M forward earnings factors just the earnings upgrade. Sustainability of growth momentum in FY22 can drive further re-rating. Reiterate Buy. LAURUS 1QFY21 revenues grew at a robust rate of 77% YoY to INR9.7b INR3.5b v/s INR1.1b YoY, Other API (14% of sales) revenue of INR1.3b v/s INR440m YoY, 37% YoY growth in CDMO (10% of sales), and 19% YoY growth in Anti-Viral API (35% of sales).

2020-07-31 Laurus Labs Ltd. BOB Capital Markets Ltd.

933.25 1200.00 933.25
(-29.01%) Target met Buy 2020-04-30 Laurus Labs Ltd. BOB Capital Markets Ltd.

512.50 630.00 512.50
(29.27%) Target met Buy 2020-03-24 Laurus Labs Ltd. BOB Capital Markets Ltd. 341.90 510.00 341.90
(93.77%) Target met Buy

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