Laurus Labs Ltd Stock Analysis

BSE: 540222 | NSE: LAURUSLABS | Pharmaceuticals & Drugs | Large Cap

BSE Share Price May 20, 18:01
574.45 14.20 (2.53%)

DeciZen - Make an Informed Decision on Laurus Labs

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

FAQs

1. Is Laurus Labs Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Laurus Labs Ltd is a good quality company.

2. Is Laurus Labs Ltd undervalued or overvalued?

The key valuation ratios of Laurus Labs Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Laurus Labs Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Laurus Labs Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Laurus Labs:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Laurus Labs Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'11Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 0%0%15.4%10%12.4%12%9.1%6.5%11.8%29.6%-
Value Creation Index NANA0.4-0.10.1-0.1-0.3-0.5-0.21.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 001,1601,3271,7781,9052,0562,2922,8324,8144,936
YoY Gr. Rt. %-NANA14.4%34%7.2%8%11.5%23.6%70%-
Adj EPS 0012.76.617.13.32.91.94.818.115.4
YoY Gr. Rt. %-NANA-48.4%160.8%-80.8%-11.6%-34%150%277.3%-
BVPS (₹) 0037.883.999.925.127.929.23348.362.4
Adj Net Profit 0097.650.9135174154102256972828
Cash Flow from Ops. 00121-64.7182332342298347733-
Debt/CF from Ops. 004.5-12.75.72.52.93.532-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NA22.1%32.8%70%
Adj EPS NA1.1%83.9%277.3%
BVPS 0-13.520.246.3
Share Price - 39.2% 97.3% 17.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'11Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 0027.29.417.115.9116.715.444.527.8
Op. Profit Mgn % 001815.120.521.420.116.12032.228.8
Net Profit Mgn % 008.43.87.69.27.54.59.120.216.8
Debt to Equity 001.51.11.20.60.70.70.60.60.2
Working Cap Days 000210197212222227220191211
Cash Conv. Cycle 0001061121311361301198142

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 27.80%

Sales growth is growing at healthy rate in last 3 years 32.78%

Net Profit is growing at healthy rate in last 3 years 83.94%

Debt to equity has declined versus last 3 years average to 0.56

Sales growth is not so good in last 4 quarters at 4.42%

Latest Financials - Laurus Labs Ltd.

Standalone Consolidated
TTM EPS (₹) 14 15.4
TTM Sales (₹ Cr.) 4,707 4,936
BVPS (₹.) 63.1 62.4
Reserves (₹ Cr.) 3,281 3,244
P/BV 9.11 9.21
PE 41.15 37.30
From the Market
52 Week Low / High (₹) 433.20 / 723.55
All Time Low / High (₹) 59.60 / 723.55
Market Cap (₹ Cr.) 30,869
Equity (₹ Cr.) 107.5
Face Value (₹) 2
Industry PE 37.3

Management X-Ray of Laurus Labs :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *32.2745.2231.5616.4215.761.150.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Laurus Labs Ltd

The company was originally incorporated as Laurus Labs Private Limited on September 19, 2005 at Hyderabad, Andhra Pradesh, India as a private limited company under the Companies Act, 1956. The company was subsequently converted into a public limited company and its name was changed to Laurus Labs Limited and a fresh certificate of incorporation consequent upon change of name on conversion to a public limited company was issued by the Registrar of Companies, Andhra Pradesh and Telangana, located at Hyderabad (RoC) on February 12, 2007. Subsequently the name of the company was changed to Aptuit Laurus Limited and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on July 19, 2007. Thereafter, the cmpany was converted into a private limited company and its name was changed to Aptuit Laurus Private Limited and a fresh certificate of incorporation consequent upon change of name on conversion to a private limited company was issued by the RoC on July 24, 2007. Subsequently the name of the company was changed to Laurus Labs Private Limited and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on February 21, 2012. The company was converted into a public limited company and the name of the company was changed to Laurus Labs Limited and a fresh certificate of incorporation consequent upon change of name on conversion to a public limited company was issued by the RoC on August 16, 2016.

Laurus Labs Limited is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. Laurus Labs develop innovative medicines that greatly improve health outcomes for patients with an unremitting focus on quality and affordability. It works with all the top generic pharmaceutical companies in the world. The company sells its APIs in many countries. Its major focus areas include anti-retroviral, Hepatitis C and Oncology drugs. Continuous innovation is the lifeblood of its business. Therefore, it undertake dedicated R&D in areas that have significant growth potential. The company has commercialised various products since inception across three distinct business units: Generics API, Generics FDF and Synthesis.

Business area the company

Laurus Labs offers broad and integrated portfolio of Active Pharma Ingredients (API) including intermediates, Generic Finished dosage forms (FDF) and Contract Research services to cater to the needs of the global pharmaceutical industry.

Business units

  • Generics API
  • Generics FDF
  • Ingredients
  • Synthesis
  • Facilities

Awards

2017-18

  • Laurus wins ‘API Supplier of the Year’ Award- Laurus Labs has been named as the ‘API Supplier of the Year- 2017’ at the Global Generics and Biosimilars Awards. These awards recognize companies that implement best practices in the global pharmaceutical industry.
  • National Safety Award- Laurus Labs received the prestigious National Safety Award for best safety performance from DGFASLI, Ministry of Labour and Employment, Government of India.
  • Laurus Labs certified as ‘Great Place to Work’ for the year 2018- Laurus Labs has been certified as a ‘Great Place to Work’, in the large-sized organization category in India, in the 2018 edition of Great Place to Work - a study by the Great Place to Work Institute. It is an important step for the organisation in its journey to build a high-trust, high performance culture.

2018-19

  • Best Work Places- Laurus Labs is recognised as one of the Best Work Places in Biotechnology, Pharmaceuticals & Health Care sectors for the year 2018.
  • Express Pharma Excellence Award 2019- Laurus Labs received the Indian Express Pharma Excellence Award 2019.
  • Global Generics and Biosimilars API Supplier of the Year Award- Laurus Labs won the Global Generics and Biosimilars API Supplier of the Year award. The award was presented by Generics Bulletin - in association with IQVIA - at the Palacio Municipal de Congresos, Madrid on October 9, 2018.
  • IconSWM Excellence Award 2018 Laurus Labs received the ‘IconSWM Excellence Award 2018’ for the excellence shown in Resource-efficient Industry. IconSWM stands for International Conference on Sustainable Waste Management. 8th IconSWM conference organised with the collaboration of the Andhra Pradesh government.

2019-20

  • National Safety Award- The company (Unit 1 and Unit 3) won the prestigious National Safety Award for best safety performance for 2017 from DGFASLI, Ministry of Labour and Employment, Government of India.
  • Pharmexcil Award- Laurus Labs the Pharmexcil Outstanding Export Performance Award 2018 -19.
  • Great Place to Work- Laurus Labs was certified as Great Place to Work for the second consecutive year in 2019-20.
  • Fortune 500 Company- Laurus Labs continue to feature in the Fortune 500 Companies List in India since 2017.

Milestones

2007

  • Set up API manufacturing facility Unit-I at Visakhapatnam
  • Secured investment from Aptuit Singapore of Rs 1.02 billion
  • Executed manufacturing and services agreements with three multinational companies
  • Commenced operations at its R&D Centre

2008

  • Filed its first-ever Drug Master File
  • Commenced operations at Unit-I
  • Supplied company’s first product to the US

2009

  • DSIR recognised its R&D Centre
  • Commercialised four nutritional fine chemicals
  • Launched first product in Europe
  • Entered into a license agreement with an international organisation and a multinational company to manufacture and sell its products in the ARV segment

2010

  • Received USFDA, TGA and UK MHRA certification for the Unit 1, Vishakhapatnam

2011

  • Received USFDA and KFDA certification for its R&D Centre
  • Received KFDA certification for Unit 1

2012

  • Secured investment of INR 490 million from FIL Capital Management and FIP through primary investment and
  • Secondary acquisition of Aptuit’s majority stake along with additional investments by one of its promoters

2013

  • Crossed Rs 10 billion in revenues
  • Received WHO approval for Unit-I

2014

  • Acquired 135 acres in Visakhapatnam for expansion
  • Received an investment of Rs 3000 million from Bluewater
  • Commenced construction of Unit 2
  • Incorporated Laurus Inc. in Delaware, US as a wholly-owned subsidiary

2015

  • Commenced commercial operations at Unit 3, Visakhapatnam
  • Acquired 27% stake in Sriam Labs Private Limited, Hyderabad
  • Successful inspection by WHO, NIP Hungary and US FDA for Unit 1 and Unit 3 manufacturing sites

2016

  • Successful USFDA inspection of the kilo-lab facility at its R&D Centre
  • Received approval from BfArM Germany for Unit 2 at Vishakhapatnam
  • Crossed Rs 15 billion in revenues
  • Filed first ANDA with the USFDA and first dossier with the WHO

2017

  • Successful USFDA inspection of Unit 1, 2 & 3 API manufacturing facilities with no critical observations. (Unit 2 has no 483 observations)
  • Successful WHO inspection of Units 1, 2 & 3
  • Successful BGV Hamburg (German Regulatory Authority) inspection of Unit 2 (FDF) with no critical or major observations

2018

  • Crossed INR 20 billion of revenue. Commenced commercial operations from Unit 4.
  • Incorporated a subsidiary in Germany.
  • Unit 2-Formulations, inspected by USFDA with Zero 483 observations.
  • Launched maiden FDF product Tenofovir in USA, Canada and emerging markets.
  • Certified as Great Place to Work for the year 2018.

2019

  • Unit 6 - EIR Received from USFDA
  • Entered into Strategic partnership with Global Fund for 3.5 years.
  • Executed a major tender order and delivered ahead of schedule
  • Executed highest on-time delivery in FDF orders.
  • Maiden EIR received for Unit 4

2020

  • Incorporated Laurus Synthesis Pvt. Ltd
  • Acquired assets of an API Unit in Vizag
  • Acquired Aspen’s South Africa Subsidiary - Laurus Generics SA(PTY) Limited

2021

  • Incorporated Laurus Ingredients Pvt. Ltd. A Wholly Owned step down subsidiary of Laurus Synthesis Pvt. Ltd.
  • Acquisition of 72.55% stake in Richcore Life Sciences Pvt Ltd (Laurus Bio)
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