BSE:540222

Stock Analysis Report

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Market Cap

₹327.6b

Last Updated

2021/06/10 12:00 UTC

Data Sources

Company Financials +

Executive Summary

Laurus Labs Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of medicines and active pharmaceutical ingredients (APIs) in India and internationally. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Laurus Labs's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540222 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 540222's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

14.6%

540222

1.0%

IN Pharmaceuticals

1.6%

IN Market


1 Year Return

529.2%

540222

45.9%

IN Pharmaceuticals

67.8%

IN Market

Return vs Industry: 540222 exceeded the Indian Pharmaceuticals industry which returned 45.9% over the past year.

Return vs Market: 540222 exceeded the Indian Market which returned 67.8% over the past year.


Shareholder returns

540222IndustryMarket
7 Day14.6%1.0%1.6%
30 Day25.4%1.6%7.7%
90 Day69.7%17.6%10.1%
1 Year534.1%529.2%47.3%45.9%70.5%67.8%
3 Year543.6%531.2%68.6%64.0%39.9%33.0%
5 Yearn/a50.7%45.2%97.8%82.8%

Long-Term Price Volatility Vs. Market

How volatile is Laurus Labs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Laurus Labs undervalued compared to its fair value and its price relative to the market?

33.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540222 (₹616) is trading above our estimate of fair value (₹422.34)

Significantly Below Fair Value: 540222 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540222 is poor value based on its PE Ratio (33.6x) compared to the Indian Pharmaceuticals industry average (23.5x).

PE vs Market: 540222 is poor value based on its PE Ratio (33.6x) compared to the Indian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: 540222 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 540222 is overvalued based on its PB Ratio (12.7x) compared to the IN Pharmaceuticals industry average (3.1x).


Future Growth

How is Laurus Labs forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540222's forecast earnings growth (15% per year) is above the savings rate (6.8%).

Earnings vs Market: 540222's earnings (15% per year) are forecast to grow slower than the Indian market (21.1% per year).

High Growth Earnings: 540222's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540222's revenue (15.8% per year) is forecast to grow faster than the Indian market (12.8% per year).

High Growth Revenue: 540222's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540222's Return on Equity is forecast to be high in 3 years time (22.7%)


Past Performance

How has Laurus Labs performed over the past 5 years?

43.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540222 has a high level of non-cash earnings.

Growing Profit Margin: 540222's current net profit margins (20.4%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 540222's earnings have grown significantly by 43.1% per year over the past 5 years.

Accelerating Growth: 540222's earnings growth over the past year (285.3%) exceeds its 5-year average (43.1% per year).

Earnings vs Industry: 540222 earnings growth over the past year (285.3%) exceeded the Pharmaceuticals industry 50%.


Return on Equity

High ROE: 540222's Return on Equity (37.8%) is considered high.


Financial Health

How is Laurus Labs's financial position?


Financial Position Analysis

Short Term Liabilities: 540222's short term assets (₹30.7B) exceed its short term liabilities (₹24.6B).

Long Term Liabilities: 540222's short term assets (₹30.7B) exceed its long term liabilities (₹6.9B).


Debt to Equity History and Analysis

Debt Level: 540222's debt to equity ratio (50.6%) is considered high.

Reducing Debt: 540222's debt to equity ratio has reduced from 119.7% to 50.6% over the past 5 years.

Debt Coverage: 540222's debt is well covered by operating cash flow (55.7%).

Interest Coverage: 540222's interest payments on its debt are well covered by EBIT (20.1x coverage).


Balance Sheet


Dividend

What is Laurus Labs's current dividend yield, its reliability and sustainability?

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540222's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.38%).

High Dividend: 540222's dividend (0.32%) is low compared to the top 25% of dividend payers in the Indian market (1.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540222 has been paying a dividend for less than 10 years.

Growing Dividend: 540222's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.9%), 540222's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540222's dividends in 3 years are forecast to be thoroughly covered by earnings (9.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure


CEO

Satyanarayana Chava (59 yo)

no data

Tenure

₹79,779,606

Compensation

Dr. Satyanarayana Chava, PhD, M.sc., has been the Chief Executive Officer of Laurus Labs Limited (also known as Laurus Labs Private Limited and Aptuit Laurus Private Limited) since June 2007 and has been i...


CEO Compensation Analysis

Compensation vs Market: Satyanarayana's total compensation ($USD1.09M) is above average for companies of similar size in the Indian market ($USD625.62K).

Compensation vs Earnings: Satyanarayana's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 540222's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540222 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Laurus Labs Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laurus Labs Limited
  • Ticker: 540222
  • Exchange: BSE
  • Founded: 2005
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹327.623b
  • Shares outstanding: 536.60m
  • Website: https://www.lauruslabs.com

Number of Employees


Location

  • Laurus Labs Limited
  • Serene Chambers
  • 2nd Floor
  • Hyderabad
  • 500034
  • India

Listings


Biography

Laurus Labs Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of medicines and active pharmaceutical ingredients (APIs) in India and internationally. It o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/10 12:00
End of Day Share Price2021/06/10 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.