LAURUS' 2QFY22 performance was below our estimates. While the Synthesis segment showed a strong (over 34% YoY) growth, the 11% decline in ARV API sales, and reduced operating leverage led to a 15% decline in earnings. We reduce our FY22E/FY23E EPS estimate by 12%/10%, factoring in: a) destocking led pressure in ARV API sales, b) increase in cost pressure due to disruption in China, and c) lower operating leverage. We continue to value LAURUS at 24x 12-month forward earnings to arrive at our TP of INR690. Despite near-term headwinds in ARV APIs due to channel de-stocking, we remain positive on LAURUS on the back of: a) strong demand in the...