The businesses to track for Laurus Labs, as far as future growth trajectory is concerned, are that of synthesis and biotech
Laurus Labs.
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Laurus Labs (CMP: Rs 496; Market Cap: Rs 26,607 crore) has posted a mediocre set of numbers, impacted by weak ARV-API (antiretroviral – active pharmaceutical ingredient) sales. In addition, margins have contracted in line with the sector. While this is of concern, we believe these are transient factors. Moreover, the company’s diversification strategy and capex execution are on track. Hence, we believe in the next 3-5 years, the new strategic levers will be in the areas of biotech, contract manufacturing…
