Check Before You Invest : Laurus Labs Ltd

Q: Which industry/sub-sector does Laurus Labs Ltd belong to?

Laurus Labs Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Laurus Labs Ltd a good quality company?

Laurus Labs Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Laurus Labs Ltd undervalued or overvalued?

Laurus Labs Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 82.04, Historic Median: 52.94. Price to Book, Current: 13.76, Historic Median: 7.66. Price to Sales, Current: 10.7, Historic Median: 5.82. EV to EBITDA, Current: 41.03, Historic Median: 31.65

Q: Is Laurus Labs Ltd a good buy now?

Laurus Labs Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Laurus Labs Ltd?

Laurus Labs Ltd revenue growth is 10.2% for FY-2025, which is below its 5-year CAGR of 14.42%, indicating slower growth.

Q: Gross Profit margin of Laurus Labs Ltd?

Laurus Labs Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.5% for FY-2025, which is below its 5-year median of 23.7%, indicating decreasing margins.

Q: Operating Profit Margin of Laurus Labs Ltd?

Laurus Labs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19% for FY-2025, which is below its 5-year median of 26.77% indicating decreasing margins.

Q: Net Profit Margin of Laurus Labs Ltd?

Laurus Labs Ltd Net Profit Margin is 6.38% for FY-2025, is below its 5-year median of 13.19%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.5, Historic Median: 23.7. Operating Profit Margin (%), Current: 19, Historic Median: 26.77. Net Profit Margin (%), Current: 6.38, Historic Median: 13.19

Q: Return on Asset of Laurus Labs Ltd?

Laurus Labs Ltd Return on Asset is 4%, which is below its 5-year historical median of 10.89%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Laurus Labs Ltd?

Laurus Labs Ltd Return on capital employed is 10.16% for FY-2025, which is below its 5-year historical median of 22.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Check Before You Invest : Laurus Labs Ltd

Snapshot

Q.1 Which industry/sub-sector does Laurus Labs Ltd belong to?

Laurus Labs Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Laurus Labs Ltd a good quality company?

Laurus Labs Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Laurus Labs Ltd undervalued or overvalued?

Laurus Labs Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	82.04	52.94
Price to Book	13.76	7.66
Price to Sales	10.7	5.82
EV to EBITDA	41.03	31.65

Q.4 Is Laurus Labs Ltd a good buy now?

Laurus Labs Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Laurus Labs Ltd?

Laurus Labs Ltd revenue growth is 10.2% for FY-2025, which is below its 5-year CAGR of 14.42%, indicating slower growth.

Q.2 Gross Profit margin of Laurus Labs Ltd?

Laurus Labs Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.5% for FY-2025, which is below its 5-year median of 23.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Laurus Labs Ltd?

Laurus Labs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19% for FY-2025, which is below its 5-year median of 26.77% indicating decreasing margins.

Q.4 Net Profit Margin of Laurus Labs Ltd?

Laurus Labs Ltd Net Profit Margin is 6.38% for FY-2025, is below its 5-year median of 13.19%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	16.5	23.7
Operating Profit Margin (%)	19	26.77
Net Profit Margin (%)	6.38	13.19

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Laurus Labs Ltd?

Laurus Labs Ltd Return on Asset is 4%, which is below its 5-year historical median of 10.89%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Laurus Labs Ltd?

Laurus Labs Ltd Return on capital employed is 10.16% for FY-2025, which is below its 5-year historical median of 22.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of Laurus Labs Ltd?

Laurus Labs Ltd Return on equity is 8.3% for FY-2025, which is below its 5-year historical median of 21.63%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Laurus Labs Ltd?

Laurus Labs Ltd Cash conversion cycle is 167 days, above its 5-year historical median of 130 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.63	0.78
ROE (%)	8.3	21.63
ROCE (%)	10.16	22.97
Cash Conversion Cycle	167 days	130 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Laurus Labs Ltd?

Laurus Labs Ltd Debt-to-Equity ratio is 0.61, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Laurus Labs Ltd?

Laurus Labs Ltd Debt to cash flow from operations is 4.48, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Laurus Labs Ltd?

Q.1 Promoter shareholding and pledge status of Laurus Labs Ltd?

Promoters hold 27.49% of the Laurus Labs Ltd, with 2.69% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Laurus Labs Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Laurus Labs Ltd vs industry peers?

Laurus Labs Ltd revenue CAGR is 14.42%, compared to the industry median CAGR of 9.13%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10.2	9.1
Gross Profit Growth (%)	47.2	13.2
Operating Profit Growth (%)	35.6	13.2
Net Profit Growth (%)	110.7	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.63	0.87
ROE (%)	8.3	18.75
ROCE (%)	10.16	20.47
Cash Conversion Cycle (days)	167.07	63

Valuation & price assessment

Q.1 Stock return of Laurus Labs Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 22.43% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	22.4%	62.7%	127.5%

Q.2 Valuation ratios of Laurus Labs Ltd vs historical?

The current P/E ratio of 82.04 is higher than its historical median of 52.94, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	82.04	52.94	31.09
Price to Book	13.76	7.66	2.85
Price to Sales	10.7	5.82	2.82
EV to EBITDA	41.03	31.65	15.99

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Check Before You Invest : Laurus Labs Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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