ICICI Direct has given Buy recommendation for Laurus Labs with a target price of Rs. 550 in its research report issued on Apr 30, 2021
ICICI Direct’s research report on Laurus Labs
Q4 revenues grew 68.3% to Rs 1412 crore with strong growth across segments. Results were driven by 88.0% YoY jump in API segment to Rs 797 crore amid strong traction in antiviral APIs to Rs 569 crore (2.1x YoY) driven by higher volume of first and second line products. Formulations revenue grew 60.9% YoY to Rs 430 crore on the back of higher tender business from LMIC and higher volumes from the US and Europe. CRAMS business grew 19.0% YoY to Rs 176 crore. EBITDA margins improved 1059 bps to 33.4% (vs. 22.9% in Q4FY20) due to better product mix and improved operating leverage. Subsequently, EBITDA grew 146.2% YoY to Rs 472 crore. PAT was up 169.3% YoY at Rs 297 crore in line with a strong operational performance
We maintain BUY rating with a target price of Rs 550 (vs. Rs 440 earlier) based on 20x of FY23E EPS of 27.4.