Established in 2005, Laurus Labs stands as a prominent research-driven pharmaceutical and biotechnology entity with a commanding global presence in specific Active Pharmaceutical Ingredients (APIs). Specializing in anti-retroviral, oncology drugs (including High Potent APIs), Cardiovascular, and Gastro therapeutics, the company has secured a leadership position. Beyond API production, Laurus Labs extends its expertise by offering integrated Contract Manufacturing Organization (CMO) and Contract Development and Manufacturing Organization (CDMO) services.
In this article, we delve into a comprehensive exploration of Laurus Labs, covering its contributions to pharmaceutical advancements and its pivotal role from clinical phase drug development to commercial manufacturing.
About Laurus Labs
Laurus Labs, a trailblazing pharmaceutical and biotechnology powerhouse founded in 2005, boasts a workforce exceeding 6500 individuals, including over 1050 scientists, across more than 11 globally approved facilities by prestigious agencies such as USFDA, WHO-Geneva, Japan-PDMA, UK-MHRA, EMA, and TGA. Renowned for its leadership position in Active Pharmaceutical Ingredients (APIs), the company strategically focuses on high-growth therapeutic domains, particularly anti-retroviral, Hepatitis C, and oncology drugs.
Laurus Labs operates through two key business segments. Firstly, in the Synthesis division, accounting for 36% of FY23 revenue, the company provides comprehensive contract development and manufacturing services, offering commercial scale manufacturing, clinical phase supplies, analytical and research services, as well as nutraceuticals, dietary supplements, and cosmeceutical products.
With 60+ projects in the pipeline and 10 commercial projects in H1FY24, this segment showcases Laurus Labs’ diverse capabilities. Secondly, the API segment, constituting 43% of FY23 revenue, positions the company as a market leader in high-value and high-volume APIs, including anti-retroviral, anti-diabetic, cardiovascular, proton pump inhibitors (PPIs), and oncology products. With 82 products in this segment as of H1FY24, Laurus Labs continues to shape the landscape of pharmaceutical innovation and manufacturing on a global scale.
Laurus Labs Q3 2024 Performance Overview: Facing Headwinds Amidst Declining Profits
- Profit Decline: Laurus Labs witnessed an 88.5% YoY decline in profit for Q3 FY24, reaching Rs 23.34 crore.
- Revenue Fall: The company reported a 22.6% YoY drop in revenue, amounting to Rs 1,195 crore for the December quarter.
- Business Segment Impact: The Contract Development and Manufacturing Organisation (CDMO)-Synthesis business experienced a significant setback, with a notable 67% YoY fall.
- Share Price Reaction: Laurus Labs shares plunged by 6% in morning trade on January 25, prompted by the fourth consecutive quarterly decline in both profit and revenue.
- Analyst Recommendations: Citi analysts issued a “sell” call with a target of Rs 315 per share, citing subdued Q3 sales attributed to the high base effect and normalization of COVID-related orders from the previous year.
- Operative Leverage Concerns: Negative operative leverage persists due to growth investments, putting pressure on EBITDA margins. The animal health project faces a delay, leading to a reduction in EBITDA projections for FY24-26.
- Diversification Challenges: Laurus Labs’ efforts to diversify from HIV drugs have not yielded the expected results, and heavy investments continue to impact margins.
- Management Commentary: While the CEO expressed hope for improvements from Q4 onwards, analysts found the management’s commentary on the CDMO division’s recovery “uninspiring.”
Below are the trading platforms that you can use to purchase Laurus Labs shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| March 2024 | 407.00 | 353.91 |
| April 2024 | 395.15 | 343.60 |
| May 2024 | 389.31 | 338.53 |
| June 2024 | 403.32 | 350.71 |
| July 2024 | 399.29 | 347.21 |
| August 2024 | 415.26 | 361.10 |
| September 2024 | 431.87 | 375.54 |
| October 2024 | 423.40 | 368.18 |
| November 2024 | 440.34 | 382.90 |
| December 2024 | 444.74 | 386.73 |
Throughout 2024, Laurus Labs’ pricing is expected to fluctuate. Starting in March with a high projected at 407.00 and a low around 353.91, there will be some ups and downs in the following months. However, from June onwards, prices are anticipated to steadily rise. By December, forecasts suggest a peak high of 444.74 and a low of 386.73. So, it seems like it will be a year of market dynamics, with Laurus Labs ending on a high note.
| When | Maximum Price | Minimum Price |
| January 2025 | 445.19 | 342.45 |
| February 2025 | 446.08 | 343.14 |
| March 2025 | 455.45 | 350.34 |
| April 2025 | 446.52 | 343.47 |
| May 2025 | 433.51 | 333.47 |
| June 2025 | 453.02 | 348.48 |
| July 2025 | 444.14 | 341.64 |
| August 2025 | 457.87 | 352.21 |
| September 2025 | 463.37 | 356.44 |
| October 2025 | 475.41 | 365.70 |
| November 2025 | 487.30 | 374.85 |
| December 2025 | 509.23 | 391.71 |
In 2025, the pricing landscape for Laurus Labs is expected to undergo fluctuation. Commencing from January, projections indicate a maximum price of 445.19 and a minimum of 342.45. As the months progress, there will likely be variations in both maximum and minimum prices, with February and March potentially witnessing modest increases. By December, Laurus Labs is forecasted to reach its peak, with a maximum price projected at 509.23 and a minimum at 391.71, indicating potential market volatility and strategic shifts in pricing strategies throughout the year.
| When | Maximum Price | Minimum Price |
| January 2026 | 524.50 | 403.46 |
| February 2026 | 537.95 | 413.81 |
| March 2026 | 558.93 | 429.95 |
| April 2026 | 547.97 | 421.52 |
| May 2026 | 532.01 | 409.24 |
| June 2026 | 555.95 | 427.66 |
| July 2026 | 545.05 | 419.27 |
| August 2026 | 561.91 | 432.24 |
| September 2026 | 581.58 | 447.37 |
| October 2026 | 596.70 | 459.00 |
| November 2026 | 611.62 | 470.47 |
| December 2026 | 626.91 | 482.24 |
| When | Maximum Price | Minimum Price |
| January 2027 | 639.44 | 491.88 |
| February 2027 | 655.84 | 504.49 |
| March 2027 | 681.42 | 524.17 |
| April 2027 | 668.06 | 513.89 |
| May 2027 | 648.60 | 498.92 |
| June 2027 | 677.79 | 521.37 |
| July 2027 | 664.50 | 511.15 |
| August 2027 | 685.05 | 526.96 |
| September 2027 | 709.02 | 545.40 |
| October 2027 | 727.46 | 559.58 |
| November 2027 | 745.64 | 573.57 |
| December 2027 | 764.29 | 587.91 |
| When | Maximum Price | Minimum Price |
| January 2028 | 779.57 | 599.67 |
| February 2028 | 799.56 | 615.05 |
| March 2028 | 830.74 | 639.03 |
| April 2028 | 814.45 | 626.50 |
| May 2028 | 790.73 | 608.26 |
| June 2028 | 826.32 | 635.63 |
| July 2028 | 810.11 | 623.16 |
| August 2028 | 835.17 | 642.44 |
| September 2028 | 864.40 | 664.92 |
| October 2028 | 886.87 | 682.21 |
| November 2028 | 909.05 | 699.27 |
| December 2028 | 931.77 | 716.75 |
| When | Maximum Price | Minimum Price |
| January 2029 | 950.41 | 731.08 |
| February 2029 | 974.78 | 749.83 |
| March 2029 | 1,012.79 | 779.07 |
| April 2029 | 992.93 | 763.80 |
| May 2029 | 964.01 | 741.55 |
| June 2029 | 1,007.39 | 774.92 |
| July 2029 | 987.64 | 759.72 |
| August 2029 | 1,018.19 | 783.22 |
| September 2029 | 1,053.82 | 810.63 |
| October 2029 | 1,081.22 | 831.71 |
| November 2029 | 1,108.25 | 852.50 |
| December 2029 | 1,135.96 | 873.81 |
| When | Maximum Price | Minimum Price |
| January 2030 | 1,158.68 | 891.29 |
| February 2030 | 1,188.39 | 914.14 |
| March 2030 | 1,234.74 | 949.80 |
| April 2030 | 1,210.52 | 931.17 |
| May 2030 | 1,175.27 | 904.05 |
| June 2030 | 1,228.15 | 944.73 |
| July 2030 | 1,204.07 | 926.21 |
| August 2030 | 1,241.31 | 954.86 |
| September 2030 | 1,284.76 | 988.28 |
| October 2030 | 1,318.16 | 1,013.97 |
| November 2030 | 1,351.12 | 1,039.32 |
| December 2030 | 1,384.89 | 1,065.30 |
In 2030, Laurus Labs is anticipated to witness dynamic price movements. Beginning the year in January with a maximum price of 1,158.68 and a minimum of 891.29, the trajectory is expected to trend upwards. With each passing month, including February and March where prices may reach approximately 1,188.39/914.14 and 1,234.74/949.80 respectively, Laurus Labs could see consistent increases. This upward trend is forecasted to persist throughout the year, culminating in December with a projected maximum price of 1,384.89 and a minimum of 1,065.30, indicating sustained growth and potential market stability.
Laurus Labs Financial Condition: Last 5 Years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 2,292 | 2,832 | 4,814 | 4,936 | 6,041 | 4,982 |
| Expenses + | 1,935 | 2,266 | 3,262 | 3,512 | 4,448 | 4,161 |
| Operating Profit | 357 | 565 | 1,552 | 1,424 | 1,592 | 822 |
| OPM % | 16% | 20% | 32% | 29% | 26% | 16% |
| Other Income + | 15 | 5 | 23 | 14 | 6 | 10 |
| Interest | 88 | 90 | 68 | 102 | 165 | 186 |
| Depreciation | 164 | 187 | 205 | 251 | 324 | 369 |
| Profit before tax | 120 | 294 | 1,301 | 1,084 | 1,109 | 276 |
| Tax % | 22% | 13% | 24% | 23% | 28% | |
| Net Profit + | 94 | 255 | 984 | 832 | 793 | 193 |
| EPS in Rs | 1.76 | 4.77 | 18.33 | 15.4 | 14.67 | 3.49 |
| Dividend Payout % | 17% | 10% | 11% | 13% | 14% |
the company has demonstrated robust growth in sales over the years, with a Total Twelve Months (TTM) figure reaching 4982 crore INR in March 2023, steadily rising from 2292 crore INR in March 2019. Operating Profit Margin (OPM) reached its peak at 32% in March 2021, showcasing efficient cost management, but declined to 16% in March 2023. Despite a notable increase in expenses, the company has managed to maintain a healthy level of profitability, with Net Profit reaching 793 crore INR in March 2023, up from 94 crore INR in March 2019. However, there has been a decline in earnings per share (EPS) from 18.33 INR in March 2021 to 14.67 INR in March 2023, possibly due to increased depreciation and interest expenses. Additionally, the company’s dividend payout percentage has remained relatively stable over the years, ranging from 10% to 14%. Overall, the financials suggest a resilient performance by the company despite some fluctuations, highlighting effective operational management and sustainable growth strategies.
FAQs
What is Laurus Labs’ current market capitalization?
Laurus Labs’ market capitalization stands at ₹21,607 Crores.
The current share price of Laurus Labs is ₹401.
Laurus Labs’ share price target for January 2024 ranges from ₹386.73 to ₹444.74.
Laurus Labs anticipates its share price to range from ₹333.47 to ₹509.23 for 2025.
Laurus Labs projects its share price to reach a minimum of ₹891.29 and a maximum of ₹1,384.89.
What is Laurus Labs’ current Price/Earnings (P/E) ratio?
The stock P/E ratio for Laurus Labs is 115.
Also Read
- Easy Trip Planners Share Price Target 2024, 2025, 2026 To 2030
- ZOMATO SHARE PRICE TARGET 2024, 2025, 2026 TO 2030
- J.K CEMENT SHARE PRICE TARGET 2024, 2025, 2026 to 2030
Strategic Resilience and Growth: Laurus Labs’ Path to Prosperity – A Comprehensive Conclusion
In conclusion, Laurus Labs stands at the forefront of pharmaceutical and biotechnological innovation, showcasing remarkable growth over the past years despite recent challenges. The company’s leadership in APIs, extensive global approvals, and diversified business segments exemplify its robust position in the industry. While Q3 FY24 saw a decline in profits and revenue, Laurus Labs remains a strategic player with a resilient business model, evidenced by its Synthesis division’s diverse project portfolio and the API segment’s market leadership.
The share price predictions for 2024 to 2030 signal confidence in the company’s ability to navigate fluctuations and drive sustained growth. Noteworthy financial indicators, such as a 36.3% CAGR in profit over the last 5 years and a solid 29.4% ROE, underscore Laurus Labs’ financial health and prudent management.
Investors should consider the company’s long-term prospects, its commitment to R&D, and strategic investments in areas like Laurus Bio, agrochemicals, and animal health. While challenges persist, Laurus Labs’ trajectory suggests resilience and adaptability in an ever-evolving pharmaceutical landscape. As always, prudent due diligence and a forward-looking perspective are essential for investors evaluating Laurus Labs as a potential addition to their portfolios.
What did we learn?
- 1 About Laurus Labs
- 2 Laurus Labs Q3 2024 Performance Overview: Facing Headwinds Amidst Declining Profits
- 3 How to Purchase Laurus Labs Shares?
- 4 Laurus Labs Share Price Prediction 2024 To 2030
- 5 Laurus Labs Financial Condition: Last 5 Years
- 6 FAQs
- 6.1 What is Laurus Labs’ current market capitalization?
- 6.2 What is the current share price of Laurus Labs?
- 6.3 What is the Laurus Labs share price target for December 2024?
- 6.4 What is the company’s share price target for 2025?
- 6.5 What is the share price projection for 2030?
- 6.6 What is Laurus Labs’ current Price/Earnings (P/E) ratio?
- 7 Strategic Resilience and Growth: Laurus Labs’ Path to Prosperity – A Comprehensive Conclusion
