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INVESTMENT INSIGHTS

Check Before You Invest : Laurus Labs Ltd

BSE: 540222 NSE: LAURUSLABS ISIN: INE947Q01028
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

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 10 year financial track record.
Q.3 Is Laurus Labs Ltd undervalued or overvalued?
Laurus Labs Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
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

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 14.4% , 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 with its 5 year median of 13.19%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 16.5 23.7
Operating Profit Margin 19 26.77
Net Profit Margin 6.38 13.19
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 Equity (ROE) of Laurus Labs Ltd?
Laurus Labs Ltd Return on equity is 8.3% for FY-2025 , which is below its historical median of 21.63%, indicating the business is making worse use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of Laurus Labs Ltd?
Laurus Labs Ltd Cash conversion cycle is 167 days, above its historical median of 130 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.63 0.78
ROE 8.3 21.63
ROCE 10.16 22.97
Cash Conversion Cycle 167 days 130 days
Q.9 Debt to Equity ratio of Laurus Labs Ltd?
Laurus Labs Ltd Debt-to-Equity ratio is 0.61 , which is above with the industry average of 0.13 , 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

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)

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 8.87% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,554 8,127.2
Gross Profit 916.4 1,337.7
Operating Profit 1,055 1,810
Net Profit 354 970
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.63 0.8
ROE 8.3 18.61
ROCE 10.16 17.96
Cash Conversion Cycle (days) 167.07 76

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 19.48% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 19.5% 55% 73.5%
Q.3 Valuation ratios of Laurus Labs Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 70.16 38.25 40.28
Price to Book 11.7 7.49 2.77
Price to Sales 8.8 5.72 2.65
EV to EBITDA 34.26 31.31 15.67

Check more companies

1. Lupin
2. Dr. Reddys Lab
3. Zydus Lifesciences
4. Mankind Pharma
5. Aurobindo Pharma
6. Alkem Laboratories
7. Glenmark Pharma
8. Laurus Labs
9. Biocon
10. Abbott India
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