Sharekhan's research report on Laurus Labs
Laurus is fortifying its position in FD and synthesis segments, strengthening its presence in non- ARV space and growing in new area of biologics, through Laurus Bio. Strong demand environment well complimented with capacity expansion would drive the growth ahead. Emerging opportunities from patent expiry of drugs in areas of anti-diabetes and cardiology offer significant potential for Laurus and could drive the growth in Other API’s as well as FD’s. Channel de-stocking in the ARV API’s is gradually easing out and normalization is likely by Q1FY23. Management interaction suggests towards a possible sequential improvement in Q4FY22.
We reiterate our Buy recommendation on Laurus Labs (Laurus) with an unchanged PT of Rs. 735.