Laurus Labs Ltd., incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 35388.93 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1284.35 Crore, down -9.33 % from last quarter Total Income of Rs 1416.45 Crore and up 30.87 % from last year same quarter Total Income of Rs 981.41 Crore. Company reported net profit after tax of Rs 241.61 Crore in latest quarter.
Investment Rationale
The brokerage tweaks EPS estimates for FY22/FY23, factoring in a) benefit from the debottlenecking exercise for FDF, b) enhanced filing pace / product approvals, which would benefit Non-ARV formulations in the developed markets, c) capacity buildup for the Non-ARV segment, d) better prospects in the Synthesis segment and scale-up in the Enzymes/Biologics segment, and e) the normalization of the API business. It expects an earnings CAGR of 29% over FY21–23E, led by a sales CAGR of 42%/42%/9% in the FDF/Synthesis/API segment and ~80bp margin expansion. It values LAURUS at 24x 12M forward earnings to arrive at TP of INR800.
Promoter/FII Holdings
Promoters held 27.3 per cent stake in the company as of June 30, 2021, while FIIs held 21.5 per cent, DIIs 4.2 per cent and public and other 47 per cent.
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