Upcoming Webinar :Register now for 'ULIP as an investment during economic recovery' powered by Bajaj Allianz

Buy Laurus Labs; Target Of Rs 390: ICICI Direct

ICICI Direct is bullish on Laurus Labs recommended buy rating on the stock with a target price of Rs 390 in its research report dated October 30, 2020.

Nov 4, 2020 / 09:34 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Laurus Labs


Q2 revenues grew ~60% to Rs 1139 crore amid strong growth across segments driven by a 182.7% YoY jump in formulations to Rs 452 crore due to higher tender business from LMIC and new launches. API segment posted a strong growth of 22.4% YoY to Rs 571 crore amid strong traction across antiviral, oncology and other APIs. Similarly, CRAMS business grew ~35% YoY to Rs 116 crore. EBITDA margins improved 1349 bps to 32.8% (vs. 19.3% in Q2FY20) due to better product mix and improved operating leverage. Subsequently, EBITDA grew 171.3% YoY to Rs 374 crore. PAT was up 328.4% YoY at Rs 242 crore in line with an exceptional operational performance.


Outlook


Besides continuous improvement in the financial performances, the company is evolving as a strong vertically integrated player with strong order book visibility, improving margin profile, strengthening return ratios and healthy FCF generation. We upgrade to BUY rating with a target price of Rs 390 (18x of FY23E EPS of 21.8).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 4, 2020 09:34 pm

stay updated

Get Daily News on your Browser
Sections