Pharmaceuticals & Biotechnology
Laurus Labs Limited, together with its subsidiaries, manufactures and sells medicines and active pharmaceutical ingredients (APIs) in India and internationally. The company offers Generics APIs for advanced intermediates for anti-retroviral (ARV), antidiabetic, cardiovascular, anti-asthma, ophthalmology, oncology, gastroenterology, and hepatitis C therapeutic areas. It also provides oral solid formulations for ARVs, anti-diabetic, cardiovascular, and PPIs. In addition, the company offers contract development and manufacturing organizational services; and biotechnology services used in the nutraceutical, dietary supplements, alternate food proteins, and cosmeceutical products. Further, the company develops novel enzymatic solutions for industrial biotechnology, and animal origin free recombinant proteins and enzymes for biopharma; and offers business support services for pharmaceuticals field. Laurus Labs Limited was incorporated in 2005 and is based in Hyderabad, India.
Technicals: Bullish SharesGuru indicator.
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money looks to be reducing their stake in the stock.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
LAURUSLABS metrics compared to Pharmaceuticals
Category | LAURUSLABS | Pharmaceuticals |
---|---|---|
PE | 168.20 | 37.19 |
PS | 6.36 | 5.23 |
Growth | 6.3 % | 7.1 % |
LAURUSLABS vs Pharmaceuticals (2021 - 2025)
Summary of Laurus Labs's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook: Laurus Labs anticipates strong growth driven by robust CDMO performance, with FY25 EBITDA margins expected around 20% and gradual deleveraging. The CDMO division is projected to accelerate, supported by late-stage project deliveries in Q4 and a growing pipeline (90+ active projects). The company remains confident in long-term value creation, particularly in complex small molecules, fermentation, and biotech (via Eight Roads partnership). ARV revenues (APIs + formulations) are expected to stabilize at ~INR650 crore/quarter, while formulations and non-ARV APIs are set to recover with ANDA launches and KrKa collaboration.
Key Highlights:
Last updated: Jan 25
Question 1:
"First question is related to Laurus Bio. Recently, a 59-year-old female patient from Netherlands travelled to India for CAR-T cell therapy... Can these individually become multitherapy assets at scale?"
Answer:
ImmunoACT (Laurus' associate) expanded beyond a single product, initiating trials for BCMA CAR-T therapy and advancing other assets. The gene therapy collaboration with IIT Kanpur is progressing, with updates expected later.
Question 2:
"Given our reactors are interchangeable... we would rather do a 70% gross margin molecule. Is that how you would think as well?"
Answer:
ARV remains a stable "cash cow" business, but Laurus can repurpose capacity for higher-margin products if external conditions (e.g., PEPFAR tenders) shift, as demonstrated by past adjustments (e.g., efavirenz volume reduction).
Question 3:
"How much of the ARV formulation sales for the quarter?"
Answer:
ARV formulation sales in Q3 FY25 were Rs.304 crores.
Question 4:
"Regarding the investment by Eight Roads... Is this 400KL capacity another project?"
Answer:
The 400KL fermentation facility in Vizag (operational by 2026) and Mysore are part of Laurus Bio's expansion. Eight Roads' investment supports technical collaboration, not direct capacity creation.
Question 5:
"Total ARV vs. non-ARV revenue for the quarter?"
Answer:
Total ARV revenue (API + formulations) was Rs.619 crores in Q3. Laurus expects annual ARV revenue to stabilize between Rs.2,300"“2,500 crores, with no significant growth ahead.
Question 6:
"When is the Bio plant going live? When will KrKa's FDF capacity contribute?"
Answer:
The Vizag Bio facility will operationalize by late 2026. KrKa's validation is underway, with revenue from Unit 2 expected from late 2025.
Question 7:
"Impact of the US Biosecure Act on supply chain diversification momentum?"
Answer:
No slowdown observed; RFPs and partner engagements remain robust.
Question 8:
"Can Q4 meet the H2 EBITDA margin target of 25%?"
Answer:
Laurus reaffirms FY25 EBITDA margin guidance of ~20%, citing improved product mix and operating leverage.
Question 9:
"Will FY26 see a CDMO revenue breakthrough (e.g., Rs.2,500 crores)?"
Answer:
CDMO growth is strong, with FY26 expected to outperform FY25, driven by late-stage projects and Animal Health/Crop Science commercialization.
Question 10:
"How many commercial molecules will CDMO commercialize in FY26?"
Answer:
Laurus avoided specifics but highlighted a diversified pipeline of 90+ projects, focusing on complex APIs and volume-driven growth.
Question 11:
"Shift from RSMs/intermediates to APIs: rationale and timeline?"
Answer:
Strategic realignment toward high-value APIs leverages Laurus' tech platforms (flow chemistry, biocatalysis). This shift is progressive, driven by customer demand and capability enhancement.
Question 12:
"What drove Q3 CDMO growth? Sustainability?"
Answer:
Growth came from human health (primary) and animal health CDMO, driven by late-stage project deliveries. Sustainability is supported by a robust pipeline and capacity utilization.
Question 13:
"Impact of US exiting WHO on ARV?"
Answer:
Minimal near-term impact expected, as WHO doesn't fund procurements. ARV purchases (~10% of HIV program budgets) are likely unaffected.
Question 14:
"Why was Richcore's fermentation facility moved to Mysore?"
Answer:
Geographic adjustments (Vizag prioritized for operational efficiency) align with long-term plans for two large-scale Bio facilities (Vizag and Mysore).
Question 15:
"Valuation rationale for Eight Roads' Laurus Bio investment?"
Answer:
Partnership aims to leverage Eight Roads' portfolio for business growth, not mere capital. Laurus and Eight Roads invested at "fair" valuations, with Laurus committing additional Rs.40 crores.
Question 16:
"Oncology API decline in Q3?"
Answer:
Temporary order timing issues; Laurus maintains strong market share in key APIs (e.g., gemcitabine) with a healthy pipeline.
Question 17:
"Registration batches in Q3/Q4: single or multiple products?"
Answer:
Multiple products supplied in Q3, with more slated for Q4.
Question 18:
"CDMO's "˜breakthrough designated molecules' significance?"
Answer:
Accelerates partner approvals but Laurus avoids therapeutic area disclosures due to confidentiality.
Question 19:
"Capex reduction plans?"
Answer:
Capex remains opportunistic, prioritizing high-value segments (CDMO, Bio). FY25 capex: Rs.448 crores (9M), with FY26 investments tied to project demand.
Question 20:
"R&D hiring challenges amid Hyderabad's GCC growth?"
Answer:
Laurus emphasizes culture, employee ownership (stock options), and family-centric programs to attract/retain talent, mitigating regional competition.
Understand Laurus Labs ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
M/s. NSN Holdings (Represented by its Managing Partner, Dr. Satyanarayana Chava) | 23.02% |
NEW WORLD FUND INC | 6.5% |
ANUKAR PROJECTS PRIVATE LIMITED | 3.24% |
CHUNDURU VENKATA LAKSHMANA RAO | 2.65% |
SBI ARBITRAGE OPPORTUNITIES FUND | 1.82% |
AKASH BHANSHALI | 1.33% |
M/s. Leven Holdings (Represented by its Managing Partner, Mr. Venkata Ravi Kumar Vantaram) | 1.24% |
DSP ARBITRAGE FUND | 1.16% |
KOTAK FUNDS - INDIA MIDCAP FUND | 1.16% |
BARCLAYS WEALTH TRUSTEES INDIA PRIVATE LIMITED | 1.14% |
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 1.02% |
SATYANARAYANA CHAVA | 0.29% |
VENKATA RAVI KUMAR VANTARAM | 0.19% |
KRISHNAVENI VASIREDDI | 0.04% |
HYMAVATHI VANTARAM | 0.04% |
NARASIMHA RAO SURYADEVARA | 0.03% |
RAMA SURYADEVARA | 0.03% |
SEKHAR BABU CHUNDURU | 0.02% |
KAMALA KOMMANA | 0.02% |
NAGAMANI THOKALA | 0.02% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 33.74 kCr |
Price/Earnings (Trailing) | 168.2 |
Price/Sales (Trailing) | 6.36 |
EV/EBITDA | 37.03 |
Price/Free Cashflow | -2.04 K |
MarketCap/EBT | 120.83 |
Fundamentals | |
---|---|
Revenue (TTM) | 5.31 kCr |
Rev. Growth (Yr) | 18.97% |
Rev. Growth (Qtr) | 15.97% |
Earnings (TTM) | 200.59 Cr |
Earnings Growth (Yr) | 298.2% |
Earnings Growth (Qtr) | 365.86% |
Profitability | |
---|---|
Operating Margin | 5.26% |
EBT Margin | 5.26% |
Return on Equity | 4.84% |
Return on Assets | 2.3% |
Free Cashflow Yield | -0.05% |
Investor Care | |
---|---|
Dividend Yield | 0.13% |
Dividend/Share (TTM) | 0.8 |
Shares Dilution (1Y) | 0.05% |
Diluted EPS (TTM) | 3.71 |
Financial Health | |
---|---|
Current Ratio | 1.19 |
Debt/Equity | 0.66 |
Debt/Cashflow | 0.24 |
Detailed comparison of Laurus Labs against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
SUNPHARMA | Sun Pharmaceutical IndustriesPharmaceuticals | 4.42 LCr | 53.56 kCr | +6.16% | +22.24% | 38.52 | 8.25 | +10.28% | +28.38% |
DIVISLAB | Divi's LabPharmaceuticals | 1.6 LCr | 9.42 kCr | +4.55% | +50.34% | 77.55 | 17.01 | +20.50% | +49.46% |
CIPLA | CiplaPharmaceuticals | 1.26 LCr | 27.8 kCr | +7.81% | +10.34% | 25.18 | 4.52 | +7.01% | +33.22% |
DRREDDY | Dr. Reddy's LabPharmaceuticals | 1 LCr | 32.07 kCr | +4.76% | -4.14% | 18.36 | 3.12 | +14.31% | +4.21% |
AUROPHARMA | Aurobindo PharmaPharmaceuticals | 72.44 kCr | 31.57 kCr | +7.47% | +10.24% | 20.77 | 2.29 | +10.80% | +26.04% |