Laurus Labs Ltd
Laurus Labs Ltd
Healthcare F&OKey Fundamentals
MidcapPharmaceuticalsHealthcareInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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49 extracted metrics + investor summaries across FY06–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 19.0%
Weaknesses
4- Stock is trading at 18.4 times its book value
- The company has delivered a poor sales growth of 7.19% over past five years.
- Company has a low return on equity of 10.1% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Laurus Labs trades at a market cap of ₹99,139 Cr with a PE of 91.2x and PB of 18.8x, reflecting elevated valuations despite modest 5-year sales CAGR of 7%. The stock has surged 114% in the past year, driven by a sharp TTM profit recovery of 115%, though longer-term profit CAGR over 5 years remains negative at -2%.
- TTM profit growth of 115% signals a strong earnings recovery, suggesting the trough in profitability may be behind the company
- TTM sales growth of 23% marks a significant acceleration compared to the 3-year sales CAGR of just 4%, indicating improving demand momentum
- Last year ROE of 18% is well above the 3-year average of 10%, showing a meaningful improvement in capital efficiency
- 10-year compounded profit growth of 21% demonstrates the company's long-term ability to scale earnings over full business cycles
- 10-year sales CAGR of 14% reflects a credible track record of sustained revenue expansion in the pharmaceutical API and formulations space
- 5-year ROE average of 15% and 10-year ROE of 17% indicate historically strong return generation capability that may be reverting to mean
- Consistent dividend payout ratio of 19.0% demonstrates management's commitment to shareholder returns even during lean periods
- PE ratio of 91.2x is extremely elevated for a pharma company, leaving little margin of safety if earnings growth disappoints
- Stock trading at 18.8x book value implies a massive premium that requires sustained high growth to justify current price levels
- 5-year compounded profit growth of -2% indicates the company actually destroyed earnings over a half-decade period despite revenue increases
- 5-year sales CAGR of only 7.19% is below industry peers and barely above inflation, reflecting sluggish top-line expansion
- 3-year ROE of just 10.1% is below typical cost of equity, suggesting the company has struggled to generate adequate returns on capital in recent years
- Stock price surging 114% in one year while 3-year profit CAGR is only 4% suggests valuation may be running far ahead of fundamental earnings power
- Potential capitalization of interest costs may be flattering reported profits and understating the true operating expense burden
- Dividend yield of just 0.11% offers negligible income cushion for investors at current elevated price levels
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1 profit surges 125% YoY Jul 24
Consolidated net profit more than doubled to ₹362 crore (vs ₹162 crore YoY), beating analyst estimates of ₹270 crore. Revenue rose 29% to ₹2,026 crore with EBITDA margins expanding to 31.8% from 24.35%.
- CDMO targeting 50% revenue by FY30 Jul 25
Management confident CDMO segment will reach 50% of total revenue by FY30. ROCE currently at 19% with a stated aim to reach 23% over time.
- Broad capex push FY27-FY28 Jul 24
Laurus Labs is scaling capital expenditure across human health, animal health, peptides, gene therapy, and antibody drug conjugates over FY27 and FY28, signaling commitment to high-value biotechnology platforms.
- ₹16.95 Cr block trade on NSE Jul 29
Approximately 95,224 shares traded at ₹1,780.10 per share in a block deal worth ₹16.95 crore, indicating institutional interest at current price levels.
- NCLT hearing set Sep 10, 2026 Jul 25
NCLT Amravati scheduled next hearing for the composite scheme involving demerger of LSPL Unit-1 into Sriam Labs and amalgamation of the remainder with parent company.
- Independent Director retires Jul 24
Dr. Rajesh Koshy Chandy retired as Independent Director effective July 26, 2026, after completing his second term.
- Q1 FY27 conference call released Jul 24
Audio recording of Q1 FY27 results conference call made available per SEBI LODR Regulations 30 and 46.
TL;DR: Laurus Labs delivered a standout Q1 FY27 with 125% profit growth, 29% revenue expansion, and margin improvement to 31.8%, driven by strong CDMO momentum. Management is doubling down with broad capex across pharma and biotech platforms while targeting 50% CDMO revenue share by FY30. No material headwinds emerged this cycle. The trend is clearly improving, with execution on the CDMO pivot being the key monitorable going forward.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,182 | 1,224 | 1,195 | 1,440 | 1,195 | 1,224 | 1,415 | 1,720 | 1,570 | 1,653 | 1,778 | 1,812 | 2,026 |
| Expenses | 1,015 | 1,037 | 1,014 | 1,198 | 1,024 | 1,045 | 1,130 | 1,300 | 1,187 | 1,250 | 1,298 | 1,299 | 1,388 |
| Operating Profit | 167 | 188 | 181 | 241 | 171 | 178 | 285 | 421 | 382 | 403 | 480 | 512 | 638 |
| OPM % | 14% | 15% | 15% | 17% | 14% | 15% | 20% | 24% | 24% | 24% | 27% | 28% | 32% |
| Other Income | 4 | 2 | 2 | 19 | 3 | 5 | 9 | 59 | 10 | 27 | 6 | 12 | 9 |
| Interest | 39 | 42 | 51 | 50 | 49 | 53 | 58 | 56 | 52 | 40 | 39 | 40 | 42 |
| Depreciation | 91 | 93 | 98 | 102 | 106 | 108 | 106 | 110 | 117 | 120 | 121 | 122 | 124 |
| PBT | 41 | 54 | 35 | 107 | 18 | 23 | 131 | 312 | 224 | 270 | 327 | 361 | 481 |
| Tax % | 30% | 27% | 27% | 30% | 34% | 22% | 31% | 25% | 28% | 28% | 22% | 22% | 25% |
| Net Profit | 27 | 37 | 23 | 75 | 13 | 20 | 93 | 233 | 162 | 194 | 252 | 282 | 362 |
| EPS in Rs | 0.46 | 0.69 | 0.43 | 1.4 | 0.23 | 0.37 | 1.71 | 4.33 | 3.02 | 3.61 | 4.66 | 5.17 | 6.8 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,327 | 1,778 | 1,905 | 2,056 | 2,292 | 2,832 | 4,814 | 4,936 | 6,041 | 5,041 | 5,554 | 6,813 | 7,270 |
| Expenses | 1,126 | 1,415 | 1,497 | 1,642 | 1,935 | 2,266 | 3,262 | 3,512 | 4,448 | 4,261 | 4,499 | 5,028 | 5,236 |
| Operating Profit | 200 | 362 | 408 | 414 | 357 | 565 | 1,552 | 1,424 | 1,592 | 779 | 1,055 | 1,785 | 2,034 |
| OPM % | 15% | 20% | 21% | 20% | 16% | 20% | 32% | 29% | 26% | 15% | 19% | 26% | 28% |
| Other Income | 34 | 4 | 32 | 29 | 15 | 5 | 23 | 14 | 6 | 24 | 75 | 47 | 54 |
| Interest | 106 | 111 | 100 | 80 | 88 | 90 | 68 | 102 | 165 | 183 | 216 | 171 | 161 |
| Depreciation | 62 | 86 | 106 | 125 | 164 | 187 | 205 | 251 | 324 | 385 | 430 | 480 | 487 |
| PBT | 67 | 169 | 234 | 237 | 120 | 294 | 1,301 | 1,084 | 1,109 | 236 | 484 | 1,182 | 1,439 |
| Tax % | -2% | 21% | 19% | 29% | 22% | 13% | 24% | 23% | 28% | 29% | 27% | 25% | — |
| Net Profit | 68 | 134 | 190 | 168 | 94 | 255 | 984 | 832 | 793 | 162 | 358 | 890 | 1,091 |
| EPS in Rs | 8.81 | 16.97 | 3.6 | 3.16 | 1.76 | 4.77 | 18.33 | 15.4 | 14.67 | 2.98 | 6.64 | 16.46 | 20.24 |
| Div. Payout % | 0% | 2% | 8% | 9% | 17% | 10% | 11% | 13% | 14% | 27% | 18% | 12% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 16 | 16 | 106 | 106 | 106 | 107 | 107 | 107 | 108 | 108 | 108 | 108 |
| Reserves | 640 | 774 | 1,225 | 1,377 | 1,452 | 1,663 | 2,490 | 3,244 | 3,930 | 4,003 | 4,365 | 5,192 |
| Borrowings | 888 | 1,094 | 842 | 980 | 1,036 | 1,079 | 1,482 | 1,777 | 2,015 | 2,577 | 2,764 | 2,518 |
| Other Liabilities | 345 | 339 | 481 | 554 | 737 | 901 | 1,671 | 1,840 | 1,608 | 1,699 | 2,099 | 2,693 |
| Total Liabilities | 1,888 | 2,224 | 2,653 | 3,017 | 3,331 | 3,750 | 5,751 | 6,968 | 7,660 | 8,387 | 9,336 | 10,511 |
| Fixed Assets | 801 | 1,021 | 1,230 | 1,481 | 1,629 | 1,726 | 2,171 | 2,652 | 3,409 | 3,890 | 4,123 | 4,371 |
| CWIP | 110 | 70 | 143 | 163 | 110 | 67 | 362 | 813 | 551 | 423 | 458 | 773 |
| Investments | 7 | 7 | 3 | 3 | 3 | 3 | 3 | 31 | 50 | 124 | 233 | 309 |
| Other Assets | 970 | 1,126 | 1,277 | 1,369 | 1,589 | 1,953 | 3,214 | 3,472 | 3,651 | 3,950 | 4,521 | 5,058 |
| Total Assets | 1,888 | 2,224 | 2,653 | 3,017 | 3,331 | 3,750 | 5,751 | 6,968 | 7,660 | 8,387 | 9,336 | 10,511 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -65 | 182 | 332 | 342 | 298 | 347 | 733 | 911 | 994 | 666 | 602 | 1,624 |
| Investing | -397 | -312 | -289 | -384 | -253 | -221 | -941 | -914 | -997 | -822 | -680 | -1,086 |
| Financing | 486 | 103 | -54 | 42 | -45 | -128 | 255 | 30 | -27 | 250 | 39 | -525 |
| Net Cash Flow | 24 | -27 | -10 | 1 | 0 | -1 | 47 | 27 | -30 | 93 | -39 | 13 |
| Free Cash Flow | -447 | -144 | 55 | -49 | 44 | 125 | 49 | 34 | 6 | -10 | 61 | 560 |
| CFO/OP | -24 | 59 | 94 | 98 | 91 | 68 | 62 | 77 | 80 | 99 | 70 | 107 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 78 | 91 | 109 | 101 | 113 | 102 | 99 | 100 | 96 | 120 | 132 | 115 |
| Inventory Days | 210 | 176 | 186 | 201 | 201 | 234 | 266 | 293 | 222 | 277 | 285 | 317 |
| Days Payable | 102 | 90 | 96 | 107 | 144 | 159 | 199 | 146 | 94 | 158 | 141 | 170 |
| Cash Conversion Cycle | 186 | 178 | 199 | 195 | 170 | 177 | 166 | 247 | 224 | 240 | 276 | 263 |
| Working Capital Days | 0 | 19 | 3 | -11 | 6 | 15 | 43 | 43 | 59 | 42 | 43 | 58 |
| ROCE % | 14% | 16% | 16% | 14% | 8% | 14% | 40% | 26% | 23% | 7% | 9% | 18% |
Documents
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Company Information
Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company having a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, oncology drugs (including High Potent APIs), Cardiovascular, and Gastro therapeutics. They also offer integrated CMO and CDMO services to Global Innovators from Clinical phase drug development to commercial manufacturing. Laurus employs 6,500+ people, including around 1,050+ scientists, at more than 11 facilities approved by global agencies USFDA, WHO-Geneva, Japan-PDMA, UK-MHRA, EMA, TGA etc. [1]