Laurus Labs Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹25,206 crore, a PE ratio of 171, a debt-to-equity ratio of 0.63 and a return on equity (ROE) of 3.97%. These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
Laurus Labs Ltd Overview
Laurus Labs Ltd is a research-driven pharmaceutical company specializing in Active Pharmaceutical Ingredients (APIs), Finished Dosages, and Contract Development and Manufacturing (CDMO). It serves global markets, focusing on generics, biotechnology, sustainability, and innovative healthcare solutions, with a strong international presence.
The company has a market capitalization of ₹25,206 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 9.75% below its 52-week high and 33.8% above its 52-week low.
Laurus Labs Ltd Financial Results
Laurus Labs Ltd’s financial results for FY24 reveal a significant drop in profitability, with sales at ₹5,041 crore, down from ₹6,041 crore in FY23. Net profit decreased to ₹162.27 crore from ₹793.43 crore in FY23.
- Revenue Trend: Laurus Labs’ revenue saw fluctuations, with sales of ₹5,041 crore in FY24, declining from ₹6,041 crore in FY23 but improving from ₹4,936 crore in FY22, indicating inconsistent revenue growth.
- Equity and Liabilities: Equity capital stood at ₹108 Crores in FY24, with reserves increasing to ₹4,003 Crores. Total liabilities increased to ₹8,387 Crores in FY24 from ₹7,660 Crores in FY23, indicating a growing financial base.
- Profitability: Operating profit dropped sharply to ₹777.5 crore in FY24 from ₹1,592 crore in FY23, with an OPM% of 15.34%, down from 26.33% in FY23 and 28.74% in FY22, indicating lower profit margins.
- Earnings Per Share (EPS): Laurus Labs’ EPS significantly decreased to ₹2.98 in FY24, compared to ₹14.67 in FY23 and ₹15.4 in FY22, reflecting a sharp decline in earnings available to shareholders.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) slightly decreased to 3.97% in FY24 from 4% in FY23, suggesting a modest improvement in returns on shareholders’ equity.
- Financial Position: Laurus Labs maintained a stable financial position with a modest dividend payout of 26.85% in FY24, up from 13.63% in FY23 and 12.99% in FY22, showing a commitment to rewarding shareholders.
Laurus Labs Ltd Financial Analysis
| FY24 | FY23 | FY22 | |
| Sales | 5,041 | 6,041 | 4,936 |
| Expenses | 4,263 | 4,448 | 3,513 |
| Operating Profit | 777.5 | 1,592 | 1,422 |
| OPM % | 15.34 | 26.33 | 28.74 |
| Other Income | 26.34 | 6 | 13.58 |
| EBITDA | 803.84 | 1,598 | 1,436 |
| Interest | 182.9 | 165.17 | 100.67 |
| Depreciation | 384.58 | 324.08 | 251.49 |
| Profit Before Tax | 236.36 | 1,109 | 1,084 |
| Tax % | 28.83 | 28.16 | 23.2 |
| Net Profit | 162.27 | 793.43 | 832.23 |
| EPS | 2.98 | 14.67 | 15.4 |
| Dividend Payout % | 26.85 | 13.63 | 12.99 |
All values in ₹ Crores
Laurus Labs Limited Company Metrics
Laurus Labs Ltd has a market cap of ₹25,206 crore, a stock price of ₹468, and a PE ratio of 171. Its financial metrics reflect moderate profitability, low returns and manageable debt.
- Market Cap: Laurus Labs Ltd’s market capitalization stands at ₹25,206 crore, reflecting the total value of the company’s outstanding shares.
- Book Value: The company’s book value per share is ₹76.3, representing the net asset value available to equity shareholders.
- Face Value: Laurus Labs’ shares have a face value of ₹2.00, indicating the nominal or base value of each share issued.
- Turnover: With an asset turnover ratio of 0.63, Laurus Labs demonstrates its efficiency in generating sales relative to its assets.
- PE Ratio: The stock’s high PE ratio of 171 indicates that investors are willing to pay a premium relative to its current earnings.
- Debt: Laurus Labs has a debt of ₹2,577 crore, leading to a manageable debt-to-equity ratio of 0.63, reflecting moderate leverage.
- ROE: The company’s return on equity (ROE) is 3.97%, reflecting lower profitability and shareholder returns compared to industry averages.
- EBITDA Margin: Laurus Labs reports an EBITDA margin of 15.5%, indicating the company’s ability to generate operating profits before accounting for interest, taxes and depreciation.
- Dividend Yield: The company offers a low dividend yield of 0.16%, reflecting modest payouts to its shareholders based on current share prices.
Laurus Labs Ltd Stock Performance
The table shows varying returns on investment, with a significant 48% gain over five years, a decline of 8% over three years and a 23% increase in the past year, indicating fluctuating performance.
| Period | Return on Investment (%) |
| 5 Years | 48% |
| 3 Years | -8% |
| 1 Year | 23% |
Examples:
- A ₹100,000 investment over five years yielded ₹148,000.
- For three years, a ₹100,000 investment resulted in ₹92,000.
- In one year, ₹100,000 grew to ₹123,000, showcasing recovery.
Laurus Labs Limited Peer Comparison
Laurus Labs, with a market cap of ₹25,205.67 crore, faces competition from major players like Sun Pharma, Cipla and Dr. Reddy’s Labs. Its PEG ratio of 15.02 indicates growth potential, despite varying returns compared to peers.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3M return % | 1Y return % |
| 1 | Sun Pharma Industries | 1846.8 | 443109.31 | 1.8 | 25.13 | 59.22 |
| 2 | Cipla | 1663.8 | 134363.01 | 1.2 | 7.14 | 33.23 |
| 3 | Dr Reddy’s Labs | 6564.95 | 109549.29 | 0.81 | 9.25 | 16.97 |
| 4 | Zydus Lifesci. | 1047.55 | 105407.97 | 1.52 | -0.47 | 72.86 |
| 5 | Lupin | 2181 | 99483.69 | 2.09 | 42.53 | 93.55 |
| 6 | Mankind Pharma | 2397.6 | 96058.43 | 1.88 | 10.58 | 40.26 |
| 7 | Aurobindo Pharma | 1524 | 89297.09 | 4.09 | 24.01 | 72.94 |
| 8 | Laurus Labs | 467.5 | 25205.67 | 15.02 | 12.88 | 22.85 |
Laurus Labs Limited Shareholding Pattern
The shareholding pattern of Laurus Labs shows stable ownership distribution. Promoters hold 27.18%, while foreign institutional investors (FIIs) account for 25.67%. Domestic institutional investors (DIIs) have increased their stake to 13.56%, with retail and others at 33.59%.
| Jun 2024 | Mar 2024 | Dec 2023 | |
| Promoters | 27.18 | 27.19 | 27.19 |
| FII | 25.67 | 25.98 | 25.39 |
| DII | 13.56 | 11.78 | 11.13 |
| Retail & others | 33.59 | 35.07 | 36.3 |
All values in %
Laurus Labs Ltd History
Laurus Labs Ltd, founded in 2005, quickly established itself as a research-driven pharmaceutical company, filing its first patent in 2006. The company focused on developing Active Pharmaceutical Ingredients (APIs), especially in the oncology and anti-retroviral (ARV) segments.
Between 2007 and 2010, Laurus Labs expanded its operations by setting up manufacturing units and securing international partnerships. The company achieved significant milestones, including its first product launch in Europe and certifications from regulatory bodies like the USFDA and UK MHRA for its Visakhapatnam unit.
In the following years, Laurus Labs solidified its global presence, becoming a trusted Contract Development and Manufacturing Organization (CDMO) for generics and proprietary products. With a focus on sustainability and innovation, it continues to advance its pharmaceutical portfolio while meeting ESG goals.
How To Invest In Laurus Labs Limited Share?
Investing in Laurus Labs shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Laurus Labs shares and place your buy order.
Laurus Labs Limited Fundamental Analysis – FAQs
Laurus Labs Ltd boasts a market capitalization of ₹25,206 crore, a PE ratio of 171, a low debt-to-equity ratio of 0.12, and a return on equity (ROE) of 3.97%, reflecting its solid financial position and effective debt management.
Laurus Labs Ltd has a market capitalization of ₹25,206 crore, representing the total market value of its outstanding shares, highlighting its significant role in the Indian oil drilling and exploration sector.
Laurus Labs Limited is a leading research-driven pharmaceutical company specializing in Active Pharmaceutical Ingredients (APIs), Finished Dosages and Contract Development and Manufacturing (CDMO). It focuses on generics, biotechnology and sustainable healthcare solutions, serving global pharmaceutical markets.
Laurus Labs Limited is primarily owned by its founder and CEO, Dr. Satyanarayana Chava. Additionally, various institutional investors, mutual funds and retail investors hold shares in the company, contributing to its diversified ownership structure.
The main shareholders of Laurus Labs Ltd include its founder and CEO, Dr Satyanarayana Chava, along with institutional investors such as mutual funds, foreign institutional investors (FIIs) and retail investors, forming a diverse ownership base in the company.
Laurus Labs Limited operates in the pharmaceutical industry, specializing in the research, development, and manufacturing of Active Pharmaceutical Ingredients (APIs), Finished Dosages, biotechnology products and Contract Development and Manufacturing (CDMO) services, catering to global healthcare and pharmaceutical markets.
To invest in Laurus Labs Ltd shares, open a brokerage account with Alice Blue, complete the KYC process, fund your account and search for Laurus Labs using its ticker symbol. Place a buy order based on your investment preferences.
Determining if Laurus Labs is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects and industry comparisons. With a PE ratio of 171, Laurus Labs might be fairly valued, reflecting market expectations and moderate growth potential.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
