Laurus Labs Ltd. share price target

Laurus Labs reported yet another strong quarter on the back of high growth in the API (esp. ARV) and formulation segments.

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...

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,...

Laurus Labs reported another solid beat in Q3FY21 fuelled by strong growth in the API and synthesis segments.

Further, the company's 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...

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)...

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...

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.