Laurus Labs
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Laurus Labs is strategically transforming its business model to focus on high-value CDMO services, particularly in complex modalities such as peptides and gene therapy. Management's bullish outlook is supported by a robust order book and a diversified pipeline, which is expected to drive a 34.8% CAGR in the CDMO segment through FY28. This aligns with Vista's forecast of stable revenue growth and improving margins, as the company invests heavily in capacity expansion, raising FY27 capex to INR 20 billion. However, potential headwinds include geopolitical risks affecting raw material availability and the execution of large-scale projects. The pharmaceutical industry's expansion, particularly in India's biopharma market, provides a favorable backdrop, although inflationary pressures and supply chain complexities could pose challenges. Over the next 12-24 months, Laurus Labs is well-positioned to capitalize on its strategic initiatives, but investors should monitor the execution risks and macroeconomic factors that could impact profitability
Why We Like This Stock
- Strong growth trajectory in the CDMO segment, projected at a 34.8% CAGR through FY28
- Substantial investments in capacity expansion, enhancing long-term revenue visibility
- Favorable industry dynamics with increasing demand for outsourcing in the pharmaceutical sector
Things To Watch Out For
- Geopolitical risks impacting raw material availability and logistics
- Execution challenges associated with large-scale capacity additions
- Inflationary pressures and supply chain complexities could affect margins
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,041 | 5,554 | 6,813 | 7,801 | 9,046 |
| Profit Before Tax (Cr.) | 238 | 427 | 1,182 | 1,610 | 1,795 |
| PBT Margin | 4.7% | 7.7% | 17.3% | 20.6% | 19.8% |
| Net Profit (Cr.) | 138 | 292 | 885 | 1,200 | 1,338 |
| Earnings Per Share | 2.5 | 5.4 | 16.4 | 22.2 | 24.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ► Hold | 1,720 | 27-Jul-2026 |
| Motilal Oswal | ▲ Buy | 1,980 | 24-Jul-2026 |
| Goldman Sachs | ▼ Reduce | 1,000 | 04-May-2026 |
| Jeffries | ► Hold | 1,100 | 04-May-2026 |
| Kotak Securities | ▼ Sell | 800 | 04-May-2026 |
| HDFC Securities | ▼ Reduce | 1,130 | 30-Apr-2026 |
Company Overview
Show Company Profile
Laurus Labs Limited, together with its subsidiaries, manufactures and sells medicines and active pharmaceutical ingredients (APIs) in India and internationally. The company offers Generics APIs and solid oral drug products for intermediates for anti-retroviral (ARV), anti-diabetic, cardiovascular, anti-asthma, ophthalmology, oncology, and gastroenterology. It also develops and manufactures animal-origin-free recombinant proteins and cell-culture media supplements and research and development services, including drug substance development, drug product development, and biologics development. In addition, the company offers non-human ingredients; rare disease therapeutics; and finished dosages. Laurus Labs Limited was incorporated in 2005 and is based in Hyderabad, India.