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Laurus Labs Ltd. Stock Analysis

Mid Cap
Evaluated by 833 users | BSE: 540222 | NSE: LAURUSLABS |
Pharmaceuticals & Drugs
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...
1. Right Stock
Very Good
2. Right Price
3. Right Time

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'10Mar'11Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 00015.39%9.95%12.41%12.02%9.07%6.48%11.77%
Value Creation Index NANANA0.28-0.170.030.00-0.24-0.46-0.02
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 0001,1601,3271,7781,9052,0562,2922,832
Y-o-Y Gr. Rt.-NANANA14.4%34%7.2%8%11.5%23.6%
Adjusted EPS (Rs.) 00012.76.5617.113.292.911.924.8
Y-o-Y Gr. Rt.-NANANA-48.4%160.8%-80.8%-11.6%-34%150%
Book Value per Share (Rs.) 00037.8383.9299.8625.0527.8629.1833.02
Adjusted Net Profit 00097.650.9135174154102256
Net Op. Cash Flow (Rs. Cr.) 000121-64.7182332342298347
Debt to Cash Flow from Ops 0004.48-12.695.652.542.863.483.04
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Laurus Labs Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA16.4%14.1%23.6%
Adjusted EPS NA-6.1%13.4%150%
Book Value per Share 0-179.713.2
Share Price - - 44.3% 358.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 00027.249.4217.0915.910.986.7115.41
Operating Profit Margin (%) 00018.0215.0920.4721.4320.1316.0520
Net Profit Margin (%) 0008.423.827.619.187.514.459.06
Debt to Equity 0001.541.141.20.640.660.670.6
Working Capital Days 0000210197212222227220
Cash Conversion Cycle 0000106112131136130119
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 32.12%
Institutions 27.08%
Non-Institutions 40.79%
Pledged *18.3523.4631.2530.2231.4631.6932.2745.2231.5616.42
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Laurus Labs Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Laurus Labs Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company.

Data is not available for this company

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

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.

The company’s strategic and early investments in R&D and manufacturing infrastructure have enabled it to become one of the leading suppliers of APIs in the ARV therapeutic area to multi-national pharmaceutical formulation companies which cater to the large and fast-growing “donor-funded access-to-medicines markets” of Sub-Saharan Africa, South-East Asia and Latin America. During the financial year 2016, the company sold its APIs in 32 countries. The company is also growing synthesis and nutraceutical/cosmeceutical ingredients businesses. Further, the company is increasingly focused towards growing its integrated generics finished dosage forms (FDFs) business in which it has made significant investments over the last two financial years.

The company operates in four business lines: Generics - APIs, Generics - FDFs, Synthesis and Ingredients. The company’s Generics - API business comprises the development, manufacture and sale of APIs and advanced intermediates; its Generics - FDF business comprises the development and manufacture of oral solid formulations; its Synthesis business includes contract development and manufacturing services for global pharmaceutical companies; and its Ingredients business comprises the manufacture and sale of specialty ingredients for use in the nutraceutical and cosmeceutical sectors.

Business area of the company

The company is a leading research and development (R&D) driven pharmaceutical company in India, with a leadership position in generic active pharmaceutical ingredients (APIs) for select, high-growth therapeutic areas of anti-retrovirals (ARVs) and Hepatitis C. It also manufactures APIs in oncology and other therapeutic areas.

Major events and milestones of the company

  • 2006: Set up the R&D Centre.
  • 2006: Signed term sheet with a leading Indian pharmaceutical company for oncology APIs.
  • 2006: Filed the company’s first patent application.
  • 2007: Set up Unit 1.
  • 2007: Investment by Aptuit Singapore of Rs 1.02 billion in the company.
  • 2007: Executed manufacturing and services agreements with three multinational companies.
  • 2007: Commenced operations at the R&D Centre.
  • 2008: Filed first Drug Master File.
  • 2008: Commenced operations at Unit 1.
  • 2008: Supplied the company’s first product to the USA.
  • 2009: DSIR recognition received for the R&D Centre.
  • 2009: Commercialised four nutritional fine chemicals.
  • 2009: Launched the company’s first product in Europe.
  • 2009: Entered into a license agreement with an international organization and a multinational company for license to manufacture and sell one of the company’s products in the ARV segment.
  • 2010: Received US FDA certification, TGA and UK MHRA certification for the Unit 1.
  • 2011: Received US FDA certification for the R&D Centre.
  • 2011: Received Korean FDA certification for Unit 1 and the R&D Centre.
  • 2012: Investment of Rs 490 million in the company by FIL Capital Management and FIP through primary investment and secondary acquisition of Aptuit’s majority stake in the Company along with additional investments by one of the company’s Promoters.
  • 2013: Crossed `10 billion of revenues. 
  • 2013: Received WHO approval for Unit 1.
  • 2013: Purchased/ leased land at Visakhapatnam for future expansion.
  • 2014: Investment of `3,000 million by Bluewater and acquisition by Bluewater of significant stake from FIL Capital Management and FIP (acting through FIL Capital Advisors) through secondary share purchase transaction.
  • 2014: Commenced construction of Unit 2.
  • 2014: Incorporated Laurus Inc. at Delaware as a wholly owned subsidiary of the company.
  • 2015: Commenced commercial operations at Unit 3.
  • 2015: Acquired 27% stake in Sriam Labs.
  • 2015: Successful inspection by WHO, NIP Hungary and US FDA for Unit 1 and Unit 3 manufacturing sites.
  • 2016: Successful US FDA inspection of the kilo lab facility at R&D Hyderabad.
  • 2016: Received approval from BfraM Germany for Unit 2.
  • 2016: Crossed `15 billion in revenues.
  • 2016: Filed two ANDAs with the US FDA and first dossier with the WHO.
  • 2016: Acquired balance 73% stake in Sriam Labs, making it a wholly owned subsidiary of the company.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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