Buy Laurus Labs; target of Rs 470: Motilal Oswal
Motilal Oswal is bullish on Laurus Labs has recommended buy rating on the stock with a target price of Rs 470 in its research report dated January 30, 2021.
February 03, 2021 / 08:47 PM IST
Motilal Oswal's research report on Laurus Labs
LAURUS continues to strengthen its quarterly performance with better than expected 3QFY21 result. While the ARV segment remains the key growth driver currently, it is building additional levers like CDMO services on the biotechnology front, adding new dosage capabilities, and building an ANDA pipeline for the US market. n We raise our FY21E/FY22E/FY23E EPS estimate by 3.5%/8.5%/11.5% to factor in: a) strong traction in ARV-API segment, b) new customer addition in the Synthesis segment, and c) higher contribution from non-ARV API business. We continue to value LAURUS at 18x 12 months forward earnings to arrive at our TP of INR470. We remain positive on LAURUS on the back of: a) healthy momentum in the ARV segment, b) increased focus on the Synthesis segment, and c) plans to enter new dosages (other than oral solids). Reiterate Buy.
We value LAURUS at 18x 12 months forward earnings to arrive at our TP of INR470.
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