Buy Laurus Labs; target of Rs 440: ICICI Direct
ICICI Direct is bullish on Laurus Labs has recommended buy rating on the stock with a target price of Rs 440 in its research report dated January 30, 2021.
February 05, 2021 / 07:14 PM IST
ICICI Direct's research report on Laurus Labs
Q3 revenues grew ~76.6% to Rs 1288 crore amid strong growth across segments driven by 103.5% YoY jump in API segment to Rs 731 crore amid strong traction in antiviral APIs to Rs 568 crore (2.65x YoY) driven by higher volume of first-line products. Formulations revenue grew 47.2% YoY to Rs 430 crore on the back of higher tender business from LMIC and higher volumes from US, Europe. CRAMS business grew 62.4% YoY to Rs 127 crore. EBITDA margins improved 1278 bps to 33.1% due to better product mix and improved operating leverage. Subsequently, EBITDA grew 187.7% YoY to Rs 426 crore. PAT was up 271.3% YoY at Rs 273 crore.
We maintain BUY rating with a target price of Rs 440 (vs. Rs 390 earlier) based on 18x of FY23E EPS of 24.4.
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