Accumulate Laurus Labs; target of Rs 687: KR Choksey

KR Choksey's research report on Laurus Labs

Laurus Labs’ revenue beat our estimates significantly due to strong growth in Custom Synthesis segment and FDF segment. EBITDA beat our estimates due to better-than-expected gross profit and Adj. PAT beat our estimates due to strong operating performance. We increase our FY26E/FY27E EPS estimates by 0.6% and 5.0% to INR 13.5/INR 19.6, respectively showing our confidence that the company’s strategic focus on advanced intermediates and APIs, several R&D launches are expected to drive growth in the medium term, and late-stage projects and shift towards advanced manufacturing capabilities indicate a solid long-term growth trajectory.

Outlook

Currently, the stock is trading at a P/E multiple of 44.7/30.7 based on FY26E/FY27E EPS, respectively. We roll over our valuation multiple to FY27E and assign a PE multiple of 35.0x to arrive at a target price of INR 687 (previously: INR 489) and maintain “ACCUMULATE” rating.

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