Laurus Labs Ltd. share price target

Q1 revenue/EBITDA came in 5%/8% above consensus and grew 20%/ 15% YoY to Rs 15.4bn/Rs 4.5bn

Q4 topline growth 14% ahead of consensus as healthy CDMO, FDF and non-ARV API sales offset decline in ARV business

Inventory destocking in ARV API/FDF led to 20% YoY decline in revenue; guided to normalise from Q4

Laurus Labs (LAURUS) has agreed to acquire a 26.6% stake in ImmunoACT for a consideration of INR460m, implying enterprise value of INR1.7b. ImmunoACT currently has four CAR-T cell molecules, with one of them undergoing clinical trials. CAR-T cell is a new therapy for Leukemia/Lymphoma, with USD1.5b in worldwide sales of five commercialized products. Given that ImmunoACT products are under development, the commercialization would be subject to a successful clinical outcome. However, this represents LAURUS' entry for a potential CDMO opportunity into a new therapy space over the next 45 years....

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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...

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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...

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...