KR Choksey's research report on Laurus Labs
Laurus Labs (LAURUSLABS) met our estimates on revenue, EBITDA margins and PAT front for both Q4FY24 and FY24; however, underperformed on GPM in Q4FY24 and marginally underperformed on the same in FY24. Notably, higher value CDMO and custom synthesis segment witnessed 3.5% Y-o-Y (+11.3% Q-o-Q) rise in revenue in Q4FY24 after 4 consecutive quarters of decline seen due to waning of high base effect. We expect the company to see Revenue/ EBITDA/ PAT CAGR of 23.2%/ 51.1%/118.2%, respectively over FY24-FY26E.
Outlook
The stock is trading at 104.9x/30.9x our FY25E/FY26E EPS. We apply a multiple of 35.6x (earlier 30.0x) on FY26E EPS of INR 14.1 (unchanged) and arrive at a revised target price of INR 503, (earlier Rs. 424) implying an upside of 15.0% from the CMP. We upgrade our ACCUMULATE rating on the shares of Laurus Labs Ltd to BUY. The increased multiple is to account for its high likelihood to get back to improved margins over FY25E-FY26E as new projects and animal health and crop protection start realizing.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
