Laurus Labs Ltd. share price target

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 API's. Operating margins surprised positively, surging 1351 bps y-o-y to 32.8%, aided by an expansion...

Laurus Labs reported yet another record beat in Q2FY21 with no major one-offs.

Media articles suggest growing consolidation in the e-pharmacy chain, i.e. Reliance-Netmeds and PharmEasy-Medlife.

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).

Laurus Labs reported a record Q1 beat with no major one-offs.

Laurus Labs reported a strong operational beat of 8%/20%/41% on sales/EBITDA/ PBT in Q4.

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Laurus Labs reported a consecutive beat with best-ever Q3 EBITDA, led by strong operating leverage in formulations and higher gross margins.