Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Interesting Articles

| More

Laurus Labs Limited - Review

Posted On: 2020-05-03 12:49:16

Formulations, API & Contract Manufacturing are the three categories.

APIs: 57% of the business is contributed through this segment. Of which 38% (of total business) is from Antiviral. 7% (of total business) is from Onco APIs and 12%(of total business) from Other APIs. Antiviral APIs - post WHO's move away from Efavirenz to Dolutegravir as 1st line regimen, Laurus had some significant impact. This may be offset by other APIs. But here this should be revenue neutral if not declining impact to the topline. Onco & Other APIs segment may not create a significant impact. On an overall 57% of base business should either remain where it is or decline.

Author: Ravi Sundaram

Contract Manufacturing: 14% of over all business. Q4 had some seasonality positively contributing to sales on a YOY basis this may continue to grow 15-20%, but Q1 should relatively underperform.

Formulations: 29% of business comes from this segment. Of which 80% of business is from sales to Lower Middle Income Countries. This is tender based business. 10% from US and another 10% from European business. In US, they have filed 26 ANDAs of which 2 have P4 and 7 FTFs. But these days you have significant competition even in para 4. Also in one of the concalls they have mentioned at 300cr run rate they were peaking out in terms of cap utilization. (~291cr in Q3). This Q1 they are debottlenecking and adding 20% capacity. Q1 possibly may not have this added capacity. So here too Q1 should be more or less the same as q3/q4.

Where is the growth going to come from?

1. API segment possibly not. Mgmt mentioned this in concall.

2. Contract Manufacturing - Maybe. Here they have good track record. But the base is low.

3. Formulations - Limited by capacity in near term. Longer term he should probably grow. But, interestingly they are able to sell everything they manufacture. But a number of times they talk about volumes, isn't pharma value based. Are they in niche space ? - Don't think so. Also 80% contribution from LMIC countries - can this revenue get rich multiples? It's an interesting thought.

4. Promoter holding is low and almost half is pledged.

Shares of Laurus Labs Ltd was last trading in BSE at Rs.512.35 as compared to the previous close of Rs. 514.95. The total number of shares traded during the day was 69673 in over 3833 trades.

The stock hit an intraday high of Rs. 522 and intraday low of 500. The net turnover during the day was Rs. 35653932.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

How to apply for Rights Issue of Arvind Fashions Limited?

How to apply for Rights Issue of Aditya Birla Fashion and Retail Limited?

An insight on Aarti Surfactants Limited

Covid-19 and its impact on businesses

Nifty Gained 8% in the June Series, Bank Nifty Surged 12%-Highest Since March 19 - HDFC Securities

IMF Growth Revision for India - Acuité Ratings & Research

Co-operative Banks - RBI Supervision - Acuité Ratings & Research

HDFC Securities views on relaxations announced by SEBI

India can reduce China trade deficit by over $8 billion in FY21-22 - Acuité Ratings & Research

How can investors preserve their wealth during times of crisis

JM Financial Yield Enhancer (Distressed Opportunity) Fund I raises Rs.160 crore in its first close

Samco Securities launches BTPT - Buy Today, Pay In Two days for Investors Buying Stocks

No data breach of BHIM app: Report

India's sovereign rating downgrade by Moody's - Acuité Ratings & Research

Banking Sector Credit Trends - Unusual trends - HDFC Securities

Rollover Report for May - June 2020: Angel Broking

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q4 GDP

Mr. Dhiraj Relli views on GDP Numbers - HDFC Securities

Banking Sector Update - NIM compression on the cards - HDFC Securities

May series ends with a bang: Angel Broking

May 2020 F&O Series Expiry - Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Views on Impact of Locusts Attack on Agriculture - Acuité Ratings & Research

ICAI establishes Center for Audit Quality

Bharti Telecom raised over Rs. 8433 crores through Accelerated Book-build offering of equity shares of Bharti Airtel

SATYA MicroCapital raises INR 105 crore equity funding from Japan-based Gojo & Company Inc.

Mr. Rajnish Kumar, Chairman, SBI & IBA on the announcements made by RBI today

Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI announcement

Views of Mr. George Alexander Muthoot, MD, Muthoot Finance on RBI announcement today

Views of Ms. Anagha Deodhar - Economist, ICICI Securities on the RBI announcement today

Views on RBI Policy announcement today - Federal Bank

RBI Monetary Policy (May 2020) by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Religare Finvest Ltd. on today's monetary policy by RBI

RBI monetary policy announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

RBI's proactive measure will help revive economy: Dr.Niranjan Hiranandani

Mr. Dhiraj Relli views on today's announcement made by RBI

Views of Mr. R K Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI announcement today

Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities on RBI announcement

Suman Chowdhury, Chief Analytical Officer at Acuité Ratings & Research, on today's RBI announcement

General Insurance Sector Update - GDPI continues to decline due to Lockdown - HDFC Securities

Stress in Banking Sector to Continue: Geojit Financial Services

Banking Sector Update - What have banks said - HDFC Securities

Satyam Shivam Sundaram, EY India on measures announced by Finance Minister today

HDFC Securities: Mr. Dhiraj Relli views on Fourth Set of Economic Measures announced by Finance Minister

Structural intervention to spur investments - Ramesh Nair, CEO and Country Head (India) JLL

MNCs & their unlisted subsidiaries - A case of misplaced premium & forgotten risk

India Equity Strategy - FM's package: Addressing liquidity concerns - HDFC Securities

Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on package announced by FM

Mr. Rajnish Kumar, Chairman, SBI on FM's announcement

Central Government's Atmanirbhar Bharat Initiative - Tata Projects Ltd

FM Stimulus View: Mr. Shachindra Nath, Executive Chairman at Ugro Capital

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019