Laurus Labs Share: More than 50% Return in 3 Months

23 Jul, 2021

8 min read

730 Views

icon
Shares of pharmaceutical and biotech company Laurus Labs have continued to surge upwards and have hit a new high amounting to INR 599 per share on the Bombay Stock Exchange as of Tuesday keeping in mind intra-day trading patterns.

Overview

This high amounts to a 5 percent increase which is eye-catching as the market has otherwise been pretty subdued. This is the eighth consecutive trading day that has witnessed a consecutive rise in the price of the stock of Laurus Labs. This falls in sharp contrast to the S&P BSE Sensex which was down 01.7 percent and held 52,237 points at 10:10 AM the same day. 

About Laurus Labs

Headquartered in Hyderabad, Laurus Labs is at the forefront of research-driven pharmaceutical manufacturing taking place in the country today. It manufactures a wide range of medical products including an active pharmaceutical ingredient (or API) which is used for gastroenterological, anti-asthma related, antidiabetic, cardiovascular, and oncology-related purposes. Laurus Labs is taking advantage of the opportunities for growth available to formulation manufacturing services in leading markets situated in North America and Europe in addition to those present in low- and middle-income countries (or LMIC).

Growth opportunities that Laurus Labs has been taking advantage of include those pertaining to contract development and manufacturing (or CDM) with the aid of its synthesis business. A large chunk of Laurus Labs’ manufacturing facilities have the approval of leading regulatory authorities including but not limited to WHO based out of Geneva, UK’s MHRA, and America’s FDA.

Laurus Labs has under its umbrella a team of over 3000 individuals who are geared towards expanding the frontiers of chemistry such that new cures can be developed while building a profitable business operation. Laurus Labs team is made up of a wide range of professionals that include research scientists, those involved in manufacturing and management in addition to veterans within the pharmaceutical industry. 

Laurus Labs has manufacturing units located in Bengaluru, Hyderabad, and Visakhapatnam.

Laurus Labs Stock Market Performance

Since April, Laurus Labs has consistently stayed ahead of the curve on the market and has surged by 73 percent following the company’s promoters releasing a large number of the pledged shares by selling the shares that they held. This stands in sharp contrast to the S&P on the BSE Sensex which was up 3.7 percent for the same time frame. 

Information pertaining to the shareholding pattern highlights only 1.15 percent of the total promoters’ holdings being pledged as of March 31 this year. This can be set against the holding pledged at the conclusion of the December 2020 quarter which amounted to 15.76 percent.

The founder and promoter holding the positions of CEO & ED, Dr. Satyanarayana Chava of Laurus Labs and Nagarani Chava, one of the key promoters in charge, collectively sold shares amounting to 7 million in number to the tune of INR 258 crores via the open market on March 4 this year.

In addition to this, the management responsible has outlined a CAPEX amounting to INR 1,500 Crores which is applicable over the next two years. Of this 50 percent is to be invested in the active pharmaceutical ingredient or API industry, 30 percent is to be directed towards the finished dosage forms (or FDF) industry and 20 percent is to be funneled towards the contract development and manufacturing organization (CDMO) segment.

Other Pertinent Information

Laurus Labs maintains confidence in terms of accruing a 30 percent EBITDA margin for the financial year 2022. Details pertaining to debottlenecking within the fixed dosage formulations (or FDF) have been dealt with as of March this year and the commercial benefits from the same are expected to deliver within the first half of 2022’s financial year. New manufacturing blocks are expected to be commercialized by September this year.

Laurus Labs seeks to add capacity to cater to non-antiretroviral (or ARV) active pharmaceutical ingredient products which are expected to be commercially accessible by the end of 2022’s financial year. This implies meaningful growth is likely following 2023’s financial year. Following 2023’s financial year, Laurus Labs is likely to witness growth and expansion within the synthesis business which contributes 11 percent of its sales. Moreover, this is expected to surpass growth within the active pharmaceutical ingredient / fixed dosage formulations segment, keeping in mind active projects and the added capacity.

Analysts believe that Laurus Labs is likely to remain victorious owing to its superior capabilities within the antiretroviral sphere. This interspersed with its superior knowledge of chemistry which governs the contract development and manufacturing organization set up and their addition of molecules to the other API segment is beneficial. Laurus Labs also stands to be cost-efficient in its operations which will continue to enhance its profits. It has created new levels within the contract development and manufacturing organization (CDMO) segment with the aid of Laurus Bio.

As per Laurus Labs website, it provides consumers with affordable and high-quality APIs that have been manufactured keeping in mind the highest good manufacturing practice standards. Their innovative FDFs have been made possible with the aid of world-class research endeavors. Their website also highlights their use of natural and nature-identical ingredients that are employed to enhance overall well-being.

Conclusion

What makes Laurus Labs stand out is its commitment to transparency and integrity. These values have helped it attract the best in its field and have helped it secure the trust of its stakeholders. Owing to the fact that Laurus Labs operates within a sector that is extremely regulated, it has adopted a high-watermark approach to compliance such that it can surpass the requirements set forth by international standards.

FAQs

Q1. What industry does Laurus Labs operate within?

A1. Laurus Labs operates within the pharmaceutical industry and manufactures a wide range of medical products including an active pharmaceutical ingredient (or API).

Q2. Why do analysts think Laurus Labs is likely to be successful in the long run?

A2.  Analysts believe that Laurus Labs is likely to remain successful due to its superior capabilities within the antiretroviral sphere.

Q3. What is API and why is it important?

A3. Active pharmaceutical ingredient (or API) is a medical product that is used for gastroenterological, anti-asthma-related, antidiabetic, cardiovascular, and oncology-related purposes.

How would you rate this blog?

Comments (0)

Add Comment

Related Blogs

  • icon

    IPO Alert! Devyani...

    09 Jul, 2021

    9 min read

    READ MORE
  • icon

    IPO Advantages and Disadvantages

    03 Oct, 2021

    7 min read

    READ MORE
  • icon

    The Success Story of Jack...

    22 Oct, 2021

    5 min read

    READ MORE
  • icon

    What is CMP in the Stock Market?

    20 Jul, 2021

    8 min read

    READ MORE
  • icon

    How are Dividends on Stocks Taxed?

    29 Jul, 2021

    8 min read

    READ MORE
  • icon

    Byju’s IPO Plans

    06 Oct, 2021

    5 min read

    READ MORE
  • icon

    What is Cryptocurrency?

    09 Oct, 2021

    7 min read

    READ MORE
  • icon

    Should you invest in the Paytm IPO?

    31 Jul, 2021

    9 min read

    READ MORE
  • icon

    The Success Story of Pharmeasy

    08 Jul, 2021

    10 min read

    READ MORE
  • icon

    Trading Strategy for...

    24 Jul, 2021

    11 min read

    READ MORE
  • icon

    LIC Seeks to Appoint CFO

    13 Oct, 2021

    6 min read

    READ MORE
  • icon

    All About Commodity Market In India

    25 Jul, 2021

    12 min read

    READ MORE
  • icon

    Introduction of Artificial...

    10 Jul, 2021

    8 min read

    READ MORE
  • icon

    A sneak peek at Zomato's IPO plans

    15 Jun, 2021

    10 min read

    READ MORE
  • icon

    Success story – Anil Ambani

    23 Sep, 2021

    6 min read

    READ MORE
  • icon

    All you need to know about SIP

    14 Jun, 2021

    8 min read

    READ MORE
  • icon

    Upcoming Healthcare...

    28 Jun, 2021

    8 min read

    READ MORE
  • icon

    Tax free Interest Income in India

    22 Aug, 2021

    6 min read

    READ MORE
  • icon

    Clean Science, GR...

    23 Aug, 2021

    6 min read

    READ MORE
  • icon

    Forex Trading: A Beginner's Guide

    27 Aug, 2021

    6 min read

    READ MORE
  • icon

    Success Story of Paytm -...

    02 Aug, 2021

    10 min read

    READ MORE
  • icon

    All you need to know about...

    15 Jun, 2021

    8 min read

    READ MORE
  • icon

    What is Capital Gain Tax...

    30 Jul, 2021

    11 min read

    READ MORE
  • icon

    What is Momentum in Stock Trading?

    26 Jul, 2021

    9 min read

    READ MORE
  • icon

    Warren Buffett's Portfolio...

    26 Jun, 2021

    9 min read

    READ MORE
  • icon

    What are ELSS Funds?

    20 Aug, 2021

    8 min read

    READ MORE
  • icon

    Why companies are choosing...

    01 Aug, 2021

    9 min read

    READ MORE
  • icon

    Success Story of Elon...

    28 Jul, 2021

    9 min read

    READ MORE
  • icon

    Things to know before...

    30 Jun, 2021

    9 min read

    READ MORE
  • icon

    The buy-and-never-sell...

    27 Jun, 2021

    8 min read

    READ MORE
  • icon

    How to make money in the...

    29 Jun, 2021

    9 min read

    READ MORE
  • icon

    Taxation on Mutual Funds

    04 Oct, 2021

    6 min read

    READ MORE
  • icon

    Top 10 Cryptocurrency to...

    12 Jul, 2021

    10 min read

    READ MORE
  • icon

    Simple trading strategies...

    06 Jul, 2021

    9 min read

    READ MORE
  • icon

    What is Guerrilla Trading?

    01 Nov, 2021

    7 min read

    READ MORE
  • icon

    Commodities Trading: An Overview

    25 Aug, 2021

    9 min read

    READ MORE
  • icon

    Success Story of Jeff...

    27 Jul, 2021

    9 min read

    READ MORE
  • icon

    Indian Railways Share...

    24 Sep, 2021

    7 min read

    READ MORE
  • icon

    All you need to know about...

    16 Jun, 2021

    8 min read

    READ MORE
  • icon

    Stocks to Watch: NMDC,...

    24 Aug, 2021

    5 min read

    READ MORE
  • icon

    The Future of Trading

    12 Jun, 2021

    8 min read

    READ MORE
  • icon

    OYO Success Story:...

    22 Jul, 2021

    8 min read

    READ MORE
  • icon

    Ixigo IPO: Ixigo Plans a...

    07 Jul, 2021

    10 min read

    READ MORE
  • icon

    Double Taxation Hangs On...

    01 Dec, 2021

    8 min read

    READ MORE
  • icon

    Gold Bond Investment in India

    07 Oct, 2021

    6 min read

    READ MORE
  • icon

    ​​Sugar Stocks Down as Sensex Falls

    29 Oct, 2021

    7 min read

    READ MORE
  • icon

    Go Air IPO: Go Air looks...

    11 Jul, 2021

    11 min read

    READ MORE
  • icon

    Soaring commodity prices....

    13 Jun, 2021

    7 min read

    READ MORE
  • icon

    Pair Trading Logic

    26 Aug, 2021

    6 min read

    READ MORE
  • icon

    Margin Trade Funding (MTF)

    21 Aug, 2021

    8 min read

    READ MORE
  • icon

    LIC IPO: All we Know So Far

    05 Oct, 2021

    7 min read

    READ MORE
  • icon

    Should you Invest in the...

    30 Aug, 2021

    7 min read

    READ MORE
  • icon

    Options Trading Explained:...

    01 Oct, 2021

    8 min read

    READ MORE
  • icon

    Income Tax in India -...

    02 Oct, 2021

    7 min read

    READ MORE
  • icon

    Blue Chips Fuel Record

    25 Oct, 2021

    6 min read

    READ MORE
  • icon

    Upcoming IPO in Nov-2021

    08 Nov, 2021

    8 min read

    READ MORE

Translate the power of knowledge into action. Open Free* Demat Account

* T&C Apply

Latest Blog

Get Information Mindfulness!

Catch-up With Market

News in 60 Seconds.


The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.

Visit Website
smartbuzz_logo smartbuzz_promotion_img

Get Information Mindfulness!

Catch-up With Market

News in 60 Seconds.

smartbuzz_logo

The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.

smartbuzz_promotion_img

Ready To Trade? Start with

angleone_itrade_img

Subscribe to #SmartSauda Newsletter

Open an account