Monday, August 7, 2023

Laurus Labs Ltd (540222)- Growing in Contract Development and Manufacturing Organisation (CDMO) space

Laurus Labs Ltd  (540222)  closes   at 400.30  with  a   Gain  of   +2..10%   on    07-Aug-2023  with formation of  a    bullish Green  candle  on Daily  Price Chart.

About the Company :  Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company having a global leadership
position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, oncology drugs (incl High Potent APIs), Cardiovascular, and Gastro therapeutics. They also offer integrated CMO and CDMO services to Global Innovators from Clinical phase drug development to commercial manufacturing.
Laurus employs 6500+ people, including around 1050+ scientists at more than 11 facilities approved by global agencies USFDA, WHO-Geneva, Japan-PDMA, UK-MHRA, EMA, TGA etc. 

Sector Update :  Positive

Refinitiv  Average Score : 2/ 10

Financials : Laurus Labs Ltd   has posted Net Sales / Revenue   of 6040.60 Cr & Net Profit of   790.10 Cr in FY2023 and expected to post Net Sales / Revenue   of 5885.30 Cr  & Net Profit of 567.30 Cr in FY2024, Net Sales / Revenue   of 6756.60 Cr  & Net Profit of 1838.70 in FY2025 and Net Sales / Revenue   of 7666.60 Cr  & Net Profit of 1104.90 Cr in FY20.26.

Valuations  : The Company is now Trading at X2.90  of its  valuations of  FY2023 (Last 4 Quarters ) earnings with ~190% premium  ;  at X2.73 of its FY2024 earnings with ~173%  Premium ; at X1.85 of its FY2025 earnings with ~85%  Premium and at X1.40 of its FY2026 earnings with ~40%  Premium

Company will reduce its total debt of 1923.50 Cr in FY 2023 to 1736.60 by FY 2026 along with Improvement in Net Margin from 13.10 (FY2023) to 14.40% ( FY2026).

Book Value Per Share  will  improve from 75.00 in FY2023 to 107.00 in FY2026  and EPS from 14.60 to 20.60 .

Early Trend : Huge Capex in FY2024 for CDMO Business.

MF/FII : 2.70% MF Holding & 5.40% FII Holding

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.4  which  will increase  in FY2024-25.The  Equity Value Per Share ( Enterprise Value Method ) is  400.30  If We factor its FY2026 earnings/valuations, relative to current valuations,  its Price arrives at 826.00

Disclaimer : We are / may going to take exposure shortly.

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