Laurus Labs Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for LAURUSLABS, BSE:540222 Laurus Labs Ltd.

Laurus Labs Ltd.

05 Aug 2019

793.75

1.99%

Laurus Labs (BUY): High opex offsets formulation positives; expect recovery in Q2

Buy: Laurus Labs Ltd.

BOB Capital Markets Ltd.

Q1FY20 operational results were in line despite strong gross margin expansion.

Laurus Labs Ltd. has an average target of 649.60 from 5 brokers.

Laurus Labs Ltd.

15 Jul 2019

793.75

1.99%

Laurus Labs (Annual Report Analysis): FY20: To start on a strong note. Maintain BUY

Buy: Laurus Labs Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 515 (18x FY21E EPS). For Laurus Labs, FY19 was a landmark year in which it finally commenced ARV formulations (TLD) supplies to the Global Fund (GF) and has started to reap from the Rs 6-7bn investments made over the years for this segment. The company also turned around its EBITDA margin from 15% in 1QFY19 to 17% in 4QFY19 after facing severe price hikes (~60%) in a key raw material for the ARV API EMT, and partially overcoming it by way of backward integration and alternate sourcing. Overall, it achieved 11% YoY revenue growth, while APAT declined 32% driven by a 450bps contraction in EBITDA margin.

Laurus Labs Ltd. is trading above all available SMAs

Laurus Labs Ltd.

06 May 2019

793.75

1.99%

Laurus Labs (4QFY19): Delivery has begun. Maintain BUY

Buy: Laurus Labs Ltd.

HDFC Securities

With buoyant 4QFY19 numbers, we remain constructive on Laurus and believe it is best-positioned to successfully transition into a formulations and CRAMS player. This will lead to improved profitability in the coming years, driven by better business mix and operating/financial leverage. Laurus entered the US$ 1.8bn ARV formulations market in FY19. In our view, it can capture at least 15% market share (in TLE/TEE/TLD), supported by one of the largest ARV API capacities. With formulations revenues/EBITDA at US$ 85/25mn in FY21E, earnings can triple over FY19-21E (on a soft base). We also expect a couple of big-ticket formulations launches in the US market by FY21, which can further boost profitability. We strongly believe the stock is ripe for healthy returns. We maintain a BUY on Laurus following a bumper (yet inline) 4QFY19. Our TP is unchanged at Rs 535/sh (18x FY21E EPS). The delivery has begun.

Laurus Labs Ltd. has gained 37.03% in the last 3 Months

Laurus Labs Ltd.

03 May 2019

793.75

1.99%

More of revenue-led growth; operating leverage yet to kick in

Buy: Laurus Labs Ltd.

Motilal Oswal

3 May 2019 increased 13.4% YoY to INR6.3b (v/s our est. of INR5.6b), led by (i) strong growth in Onco APIs (11% of sales; +91% YoY), (ii) other APIs (10% of sales; +40% YoY), and (iii) Synthesis (15% of sales; +74% YoY). Formulation sales came in at INR282m v/s INR14m in 4QFY18. Hep-C API sales increased to INR415m from INR197m in 3QFY19. However, growth was impacted by a reduction in base ARV-API business (50% of sales; -14% YoY). (GM) shrank 190bp YoY to 46% due to a change in the product mix. EBITDA margin contracted 320bp YoY to 17.6% owing to lower GM and higher other expenses (16.9% v/s 15.2% in 4QFY18). On QoQ basis, there has been 100bp/330bp improvement in GM/EBITDA margin. Adjusting for transfer of ANDA rights to Casi pharma in 3QFY19, PAT was down 4% YoY to INR432m (v/s our est.

Laurus Labs Ltd. has gained 37.03% in the last 3 Months

Laurus Labs Ltd.

10 Apr 2019

793.75

1.99%

At an inflexion point

Buy: Laurus Labs Ltd.

Target

Motilal Oswal

10 April 2019 Laurus is looking to ramp up the commercial production of its anti-retroviral (ARV) products after (a) developing products, (b) spending considerable capex (~INR4.2b) to build its formulation facility, and (c) filing products with institutional and regulatory agencies (for the LMIC-WHO/US/EU market) for its ARV products. Post the receipt of approval from the USFDA, Laurus has received an order from Global Fund to supply Tenofovir-Lamivudine-Dolutegravir (TLD) as part of a 3.5-year agreement. Further, Laurus is continuing to develop its product pipeline for the US market. Laurus has completed the expansion for Lamivudine with its offtake expected to increase over the near term. Hence, we expect the ARV API business to grow moderately to INR17b by FY21E, continuing to remain Laurus backbone by contributing 65% to total sales. We expect Laurus Synthesis business to remain strong growing at 33% CAGR with revenues of INR3.

Laurus Labs Ltd. has gained 23.63% in the last 1 Month

Laurus Labs Ltd.

28 Mar 2019

793.75

1.99%

Laurus Labs (Update): Delivery has begun. Maintain BUY

Buy: Laurus Labs Ltd.

Target

HDFC Securities

We maintain BUY with a TP of Rs 535 (18x FY21E EPS). Laurus has received Global Fund orders for the HIV drug, TLD, following a tentative approval from the US FDA last month. This is a big positive for the company and reinstates investor confidence in the business, with the formulations segment finally beginning to fire. With volume commitment for TLD from the Global Fund for the next 3.5 years, as well as ~US$ 12-15mn orders in hand from an EU partner and ongoing supplies of Metformin and HCQ to the US, we have high visibility on ~US$ 40mn formulations revenue in FY20E.

Laurus Labs Ltd. has gained 67.30% in the last 1 Year

Laurus Labs Ltd.

03 Feb 2019

793.75

1.99%

Laurus Labs (3QFY19): High visibility on recovery. Maintain BUY

Buy: Laurus Labs Ltd.

HDFC Securities

Reiterate strong BUY with a TP of Rs 480 (18x Dec-20E EPS). With three disappointing quarters behind, Laurus is finally likely to utilize its Formulations capacity with visibility on US$ 35-40mn worth of orders for FY20. This will be attributed to contracts for a European CMO partner, US generic launches like Metformin and HCQ, and TLD supplies to Global Fund and Aspen. Some of this will be seen in the next quarter as well; which, along with orders worth Rs 400-500mn postponed from 3Q, will result in a bumper 4QFY19. We have kept our estimates unchanged.

Laurus Labs Ltd. has gained 37.03% in the last 3 Months

Laurus Labs Ltd.

11 Jan 2019

793.75

1.99%

Tata Consultancy Services, Laurus Labs

Top Picks: Laurus Labs Ltd.

BOB Capital Markets Ltd.

TCS reported an in-line revenue performance in Q3FY19 with 1.8% QoQ CC (+12.1% YoY) revenue growth. Subcontracting costs increased 60bps QoQ amid onsite supply constraints, putting pressure on EBIT margins (90bps QoQ to 25.6% vs. +20bps expected). Management's double-digit revenue growth guidance for FY19 remains intact. TCS continues to be our preferred pick amongst IT large-caps we reiterate BUY and roll over to a Dec'19...

Laurus Labs Ltd. has gained 67.30% in the last 1 Year

Laurus Labs Ltd.

10 Jan 2019

793.75

1.99%

Laurus Labs (Initiating Coverage): API to formulations play. BUY

Buy: Laurus Labs Ltd.

HDFC Securities

Initiate coverage with a BUY rating and TP of Rs 480 (18x Dec-20E EPS). Laurus Labs is a young, R&D-driven; company with strengths in complex chemistry and cost-efficient capabilities in API manufacturing. Laurus has grown at a scorching pace with 30% revenue, 32% EBITDA and 40% earnings CAGR over FY12-18. However, price hikes in a key raw material (FCME) and Rs 1bn operating spend on the nascent formulations business led to a nosedive in 1HFY19 (40% earnings drop).

Number of FII/FPI investors increased from 237 to 259 in Mar 2025 qtr.

Laurus Labs Ltd.

05 Nov 2018

793.75

1.99%

Delayed operating leverage hurts earnings

Strategy Note: Laurus Labs Ltd.

Motilal Oswal

5 November 2018 (LAURUS) revenue came in at INR5.8b (our est. Growth was led by Onco APIs (8% of sales; 22% YoY), other APIs (9% of sales; 28% YoY), Hep-C APIs (6% of sales; 24% YoY) and Synthesis (9% of sales; 58% YoY). However, it was offset by muted growth in ARV APIs (66% of sales, 2% YoY). Overall, the API segment (89% of sales) grew 7% YoY. 130bp YoY to 46.5% due to higher raw material prices. This adverse effect is expected to reduce in 3QFY19 as LAURUS has followed backward integration for such products. EBITDA margin contracted at a higher rate of 540bp YoY (- related operational expenses, (b) cost associated with transfer of profit sharing on 11 products from its partners, and (c) higher R&D; cost. As a result, other expenses increased to 18.5% (as percentage of sales) from 15% YoY and 16.8% QoQ. This coupled with increased depreciation and interest INR331m).

Laurus Labs Ltd. has gained 23.63% in the last 1 Month

Is Laurus Labs Ltd. worth buying?

1227 Votes:

Buy 79.63%

Sell 10.84%

Hold 9.54%

RESEARCH REPORTS

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