Laurus Labs Ltd - Stock Valuation and Financial Performance

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

Laurus Labs Share Price

462.25 -9.10 -1.93%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Laurus Labs

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

aurus Labs stock performance -

mw4me loader
P/E Ratio (CD):
158.41
Market Cap:
24,977.8 Cr.
52-wk low:
328.2
52-wk high:
485

Is Laurus Labs Ltd an attractive stock to invest in?

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 Somewhat overvalued zone.

3. Is Laurus Labs Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Laurus Labs Ltd is likely to Rise-somewhat 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
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 10%12.4%12%9.1%6.5%11.8%29.6%19.5%16.5%4.3%-
Value Creation
Index
-0.10.1-0.1-0.3-0.5-0.21.20.70.2-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,3271,7781,9052,0562,2922,8324,8144,9366,0415,0415,041
Sales YoY Gr.-34%7.2%8%11.5%23.6%70%2.5%22.4%-16.6%-
Adj EPS 1.64.33.32.91.94.818.115.314.92.72.9
YoY Gr.-161%-23.1%-11.6%-34%150%277.3%-15.6%-2.6%-82%-
BVPS (₹) 212525.127.929.23348.362.274.775.975.9
Adj Net
Profit
50.9135174154102256972821802145157
Cash Flow from Ops. -64.7182332342298347733911994666-
Debt/CF from Ops. -12.75.72.52.93.5321.923.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 16%17.1%1.6%-16.6%
Adj EPS 5.6%6.9%-47.1%-82%
BVPS15.4%21.1%16.2%1.5%
Share Price - 45.4% -11.7% 33.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
9.417.115.9116.715.444.527.621.73.63.9
Op. Profit
Mgn %
15.120.521.420.116.12032.228.826.815.515.4
Net Profit
Mgn %
3.87.69.27.54.59.120.216.713.53.13.1
Debt to
Equity
1.11.20.60.70.70.60.60.50.50.60.2
Working Cap
Days
210197212222227220191243211268127
Cash Conv.
Cycle
1061121311361301198112113017425

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.61

Return on Equity has declined versus last 3 years average to 3.80%

Sales growth has been subdued in last 3 years 1.55%

Net Profit has been subdued in last 3 years -47.11%

Sales growth is not so good in last 4 quarters at -15.98%

Latest Financials - Laurus Labs Ltd.

Standalone Consolidated
TTM EPS (₹) 4.2 2.9
TTM Sales (₹ Cr.) 4,812 5,041
BVPS (₹.) 77.6 75.9
Reserves (₹ Cr.) 4,078 3,982
P/BV 5.97 6.11
PE 111.66 158.41
From the Market
52 Week Low / High (₹) 328.15 / 484.95
All Time Low / High (₹) 59.60 / 723.55
Market Cap (₹ Cr.) 24,978
Equity (₹ Cr.) 107.8
Face Value (₹) 2
Industry PE 43.9

Management X-Ray of Laurus Labs:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.040.040.040.040.040.040.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Laurus Labs

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,3271,7781,9052,0562,2922,8324,8144,9366,0415,041
Operating Expenses 1,1311,4151,4971,6431,9362,2673,2633,5134,4484,263
Manufacturing Costs130165206245288376523646847950
Material Costs8211,0009891,0561,2251,3832,1082,1342,7302,374
Employee Cost 131175205238276321397470557615
Other Costs 487597104146187236264314324
Operating Profit 1953624084133565651,5511,4221,592778
Operating Profit Margin (%) 14.7%20.4%21.4%20.1%15.5%19.9%32.2%28.8%26.4%15.4%
Other Income 34433291662415626
Interest 10111110080889068102165183
Depreciation 6286106125164187205251324385
Exceptional Items 0000000000
Profit Before Tax 671692352371202941,3011,0841,109236
Tax -2354470263831725131268
Profit After Tax 6813419116894255984832797168
PAT Margin (%) 5.1%7.5%10.0%8.2%4.1%9.0%20.4%16.9%13.2%3.3%
Adjusted EPS (₹)2.24.23.63.21.84.818.315.414.62.9
Dividend Payout Ratio (%)0%2%8%9%17%10%11%13%14%27%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 7198541,3251,4771,5531,7652,5933,3424,0254,089
Share Capital 8282106106106107107107108108
Reserves 6377711,2191,3711,4471,6582,4853,2353,9183,982
Minority Interest00000038115
Debt7359417699009439561,3151,5071,7572,188
Long Term Debt304460125142259165429596761798
Short Term Debt4324816447596847918869119961,389
Trade Payables2312482633124886161,1798767111,051
Others Liabilities 2031262272752943406611,2351,1561,054
Total Liabilities 1,8882,1692,5842,9643,2783,6765,7516,9687,6608,387

Fixed Assets

Gross Block9861,1061,4191,7942,1052,3883,0283,7504,7955,652
Accumulated Depreciation185851893134766618571,0981,3861,762
Net Fixed Assets8011,0211,2301,4811,6291,7262,1712,6523,4093,890
CWIP 1107014316311067362813551423
Investments 77333333150124
Inventories4754875095856829051,5751,7601,6851,845
Trade Receivables2854455685717107911,3061,3541,5801,663
Cash Equivalents 59294332487648142
Others Assets151110126158141181285281337300
Total Assets 1,8882,1692,5842,9643,2783,6765,7516,9687,6608,387

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -65182332342298347733911994666
PBT 671692352371202941,3011,0841,109236
Adjustment 136201199216248293254351486563
Changes in Working Capital -251-154-52-49-44-200-594-342-315-29
Tax Paid -17-33-50-62-25-40-229-182-285-105
Cash Flow From Investing Activity -397-312-289-384-253-221-941-914-996-822
Capex -382-326-277-391-254-222-684-877-987-676
Net Investments -151276000-28-22-80
Others 02-19111-257-1014-66
Cash Flow From Financing Activity 486103-5442-45-12825530-27250
Net Proceeds from Shares 002860237473
Net Proceeds from Borrowing 156157-38224126-99302246137147
Interest Paid -84-103-95-76-84-86-58-85-140-174
Dividend Paid 00-5-16-16-32-75-86-107-86
Others 41450142110-738778-4977361
Net Cash Flow 24-27-1010-14727-2993
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)14.4718.6518.1211.976.1915.3945.1528.0521.634.15
ROCE (%)13.7416.3516.5213.688.2214.1439.8225.9722.976.64
Asset Turnover Ratio0.850.890.810.750.730.811.020.780.830.63
PAT to CFO Conversion(x)-0.961.361.742.043.171.360.741.091.253.96
Working Capital Days
Receivable Days65749610010297809889117
Inventory Days11097949610110294123104128
Payable Days102879499119146155176106135

Laurus Labs Ltd Stock News

Laurus Labs Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Laurus Labs on 12-Jul-2024 16:01 is ₹462.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Laurus Labs stood at ₹24,977.8.
The latest P/E ratio of Laurus Labs as of 12-Jul-2024 16:01 is 111.7.
The latest P/B ratio of Laurus Labs as of 12-Jul-2024 16:01 is 5.97.
The 52-week high of Laurus Labs is ₹484.9 and the 52-week low is ₹328.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Laurus Labs is ₹4,812 ( Cr.) .

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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