Motilal Oswal has given Buy recommendation for Laurus Labs recommended buy rating on the stock with a target price of Rs 580 in its research re with a target price of Rs. 580 in its research report issued on Jan 28, 2022

Motilal Oswal’s research report on Laurus Labs

LAURUS delivered a lower than expected 3QFY22, dragged by the adverse impact of inventory rationalization in the Anti-retroviral (ARV) segment. This was offset to some extent by improving performance in Synthesis and the other API segment. Its prospects remain strong in Synthesis/other API segment, led by higher orders from existing customers as well as new customer additions. We lower our FY22E/FY23E/FY24E EPS estimate by 15.4%/12.4%%/11.8% to factor in: a) lesser demand on account of lower stocking by channel partners affecting both the API and Formulation businesses in the ARV segment, b) steadily increasing opex due to new capex, and c) lower operating leverage. We continue to value LAURUS at 24x 12-month forward earnings to arrive at our TP of INR580. We believe the inventory-related disruption in ARV is largely complete, leading to better volume led offtake going forward. LAURUS is progressing well on building Synthesis as an additional growth lever through its chemistry skill set and is subsequently building manufacturing capacity.


We maintain our Buy rating. We remain positive on LAURUS on the back of: a) its Synthesis CDMO segment outlook and a strong client base, b) its potential in the Biologics CDMO segment, with capacity addition, c) product development/capacity addition in the Non-ARV segment, and d) healthy order book in the Non-ARV API business. We reiterate our Buy rating.

More Info on Trent

At 17:30 Laurus Labs was quoting at Rs 524.40, up Rs 21.50, or 4.28 percent.

It has touched an intraday high of Rs 527.00 and an intraday low of Rs 502.90.

It was trading with volumes of 395,206 shares, compared to its thirty day average of 183,269 shares, an increase of 115.64 percent.

In the previous trading session, the share closed up 0.68 percent or Rs 3.40 at Rs 502.90.

The share touched its 52-week high Rs 720.75 and 52-week low Rs 333.25 on 13 August, 2021 and 01 February, 2021, respectively.

Currently, it is trading 27.24 percent below its 52-week high and 57.36 percent above its 52-week low.

Market capitalisation stands at Rs 28,179.12 crore.

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