Q4FY21 Result Update - Laurus Labs - ICICI Direct

Q4 revenues grew 68.3% to Rs. 1412 crore with strong growth across segments. Results were driven by 88.0% YoY jump in API segment to Rs. 797 crore amid strong traction in antiviral APIs to Rs. 569 crore (2.1x YoY) driven by higher volume of first and second line products. Formulations revenue grew 60.9% YoY to Rs. 430 crore on the back of higher tender business from LMIC and higher volumes from the US and Europe. CRAMS business grew 19.0% YoY to Rs. 176 crore. EBITDA margins improved 1059 bps to 33.4% (vs. 22.9% in Q4FY20) due to better product mix and improved operating leverage. Subsequently, EBITDA grew 146.2% YoY to Rs. 472 crore. PAT was up 169.3% YoY at Rs. 297 crore in line with a strong operational performance.

Valuation & Outlook

Laurus is well poised to follow the success story of some leading CDMO players backed by strong chemistry and integrated model. Elsewhere, formulations are expected to grow amid ramp up and new launches (e.g. TLE400) in LMIC and launches in the US. Other APIs are expected to be driven by a strong order book and capacity addition. Besides continuous improvement in the financial performances, the company is evolving as a strong vertically integrated player with strong order book visibility, improving margin profile, strengthening return ratios and healthy FCF generation. We maintain BUY rating with a target price of Rs. 550 (vs. Rs. 440 earlier) based on 20x of FY23E EPS of 27.4.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Laurus_Q4FY21.pdf

Shares of Laurus Labs Ltd was last trading in BSE at Rs.453.1 as compared to the previous close of Rs. 458.05. The total number of shares traded during the day was 257446 in over 6407 trades.

The stock hit an intraday high of Rs. 466.5 and intraday low of 450. The net turnover during the day was Rs. 117775216.

Source : Equity Bulls

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