Laurus Labs
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Laurus Labs is poised for significant growth, primarily driven by its CDMO segment, which is transitioning from clinical-stage projects to commercial manufacturing. Management's aggressive investment strategy, with a capex increase to INR20 billion, aims to enhance specialized infrastructure in high-value areas such as peptides and biologics. This strategic focus, coupled with a robust order book and the addition of a major global client, provides strong revenue visibility, supporting Vista's forecast of stable revenue growth and improving margins. However, the company faces risks related to geopolitical tensions and raw material supply constraints, which could impact production and margins. The overall macro environment in India remains supportive, with favorable liquidity conditions and a stable inflation outlook, although rising crude oil prices pose a concern. Over the next 12-24 months, key opportunities include expanding market share in the CDMO space and leveraging new trade agreements, while watchpoints include the execution of large-scale capacity additions and navigating global supply chain volatility
Why We Like This Stock
- Strong growth trajectory in the CDMO segment, projected to deliver a 34.8% CAGR through FY28
- Aggressive capex strategy aimed at enhancing specialized manufacturing capabilities in high-value segments
- Robust order book and addition of a major global client provide long-term revenue visibility
Things To Watch Out For
- Geopolitical tensions, particularly in the Middle East, could disrupt supply chains and increase input costs
- Potential raw material supply constraints may impact production and margins
- Execution risks associated with large-scale capacity additions could hinder growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,041 | 5,554 | 6,813 | 7,813 | 8,997 |
| Profit Before Tax (Cr.) | 238 | 427 | 1,182 | 2,127 | 2,152 |
| PBT Margin | 4.7% | 7.7% | 1734.9% | 27.2% | 23.9% |
| Net Profit (Cr.) | 138 | 292 | 885 | 1,585 | 1,604 |
| Earnings Per Share | 2.5 | 5.4 | 16.4 | 29.4 | 29.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▼ Reduce | 1,000 | 04-May-2026 |
| HDFC Securities | ▼ Reduce | 1,130 | 30-Apr-2026 |
| Jeffries | ► Hold | 1,100 | 04-May-2026 |
| Kotak Securities | ▼ Sell | 800 | 04-May-2026 |
| Motilal Oswal | ▲ Buy | 1,980 | 24-Jul-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 provides biotechnology services that 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 also offers non-human ingredients; rare disease therapeutics; and finished dosages. Laurus Labs Limited was incorporated in 2005 and is based in Hyderabad, India.