Laurus Labs Ltd. (LAURUSLABS) AI Stock Analysis

• Market Cap: ₹521.02B
• Dividend Yield: 0.15%
• Average Volume (3M): 107.31K
• Price to Earnings (P/E): 62.2
• Beta (1Y): 1.26
• Revenue Growth: 25.83%
• EPS Growth: 421.20%
• Country: IN
• Employees: 6,007
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 4.70
• Shares Outstanding: 539,856,570
• 10 Day Avg. Volume: 186,027
• 30 Day Avg. Volume: 107,314
• PEG Ratio: 0.73
• Price to Book (P/B): 7.23
• Price to Sales (P/S): 5.82
• P/FCF Ratio: -821.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,170.00
• Price Target Upside: 5.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹1,160.00 ▲(4.78% Upside)

Laurus Labs' overall stock score is driven by strong technical momentum, despite overbought signals, and solid financial performance with revenue growth. However, high valuation metrics and cash flow challenges weigh on the score.

Positive Factors

Consistent revenue growth

Sustained ~25% revenue growth indicates durable market traction across APIs, formulations and CMO services. Over 2-6 months this trend supports scale economies, stronger negotiating power with suppliers/customers, and funding for R&D and geographic expansion.

Strong gross margins and cost control

Persistently strong gross margins reflect manufacturing efficiency and product mix in higher-value APIs (e.g., antiretrovirals, oncology). Margin resilience supports reinvestment capacity, buffers against pricing pressure, and underpins sustainable operating leverage over the medium term.

Diverse revenue streams & contract manufacturing

A multi-pronged business model—APIs, formulations, CMO services and exports to regulated markets—reduces concentration risk and creates multiple demand channels. Long-term supply agreements with major pharma provide durable revenue visibility and cross-selling opportunities.

Negative Factors

Negative free cash flow from high capex

Persistent negative free cash flow driven by elevated capex can strain liquidity and limit financial flexibility. Over months this reduces capacity to self-fund expansion or weather downturns, potentially necessitating external financing or slower capital deployment.

Rising liabilities and weakening ROE

A declining equity ratio and weakened ROE signal increasing leverage and lower capital efficiency. Structurally higher liabilities raise financial risk, increase interest sensitivity, and reduce balance-sheet headroom for strategic investments or unforeseen shocks.

Pressure on net profitability

Eroding net margins from rising expenses point to structural profit pressure that can persist if input costs, regulatory compliance, or SG&A remain elevated. Lower net profitability constrains retained earnings and weakens long-term cash flow generation.

Laurus Labs Ltd. Business Overview & Revenue Model

Company Description

Laurus Labs Limited, together with its subsidiaries, engages in the development, manufacture, and sale of medicines and active pharmaceutical ingredients (APIs) in India and internationally. The company develops, manufactures, and sells APIs and advanced intermediates for anti-retroviral (ARV), antidiabetic, cardiovascular, proton pump inhibitors (PPIs), oncology, gastroenterology, and hepatitis C therapeutic areas. It also develops and manufactures oral solid formulations for ARVs, anti-diabetic, cardiovascular, PPIs, and central nervous system. In addition, the company provides contract development and manufacturing services for pharmaceutical companies; and manufactures and sells specialty ingredients used in the nutraceutical, dietary supplements, and cosmeceutical products. Further, it develops novel enzymatic solutions for industrial biotechnology, and animal origin free recombinant proteins and enzymes for biopharma; and offers business support services for pharmaceutical field. The company was incorporated in 2005 and is based in Hyderabad, India.

How the Company Makes Money

Laurus Labs generates revenue through multiple streams, primarily from the sale of active pharmaceutical ingredients (APIs) and finished formulations. The company has a robust client base that includes major pharmaceutical companies globally, which contributes significantly to its revenue through long-term supply agreements. Additionally, Laurus Labs engages in contract manufacturing services, allowing it to produce products for other pharmaceutical firms, thus diversifying its income sources. The company also invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities. Strategic partnerships with other biotech and pharmaceutical companies further enhance its market reach and profitability. The combination of these factors, along with a focus on exports to regulated markets, plays a crucial role in Laurus Labs' financial performance.

Laurus Labs Ltd. Financial Statement Overview

Summary

Laurus Labs shows strong revenue growth and effective cost management, but faces profitability pressure due to rising expenses. The balance sheet reflects moderate leverage with increasing liabilities, and cash flow challenges due to high capital expenditures need addressing.

Income Statement

Laurus Labs has shown consistent revenue growth, with a notable increase from 2024 to 2025. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has decreased due to rising expenses, impacting overall profitability.

Balance Sheet

The company maintains a balanced debt-to-equity ratio, reflecting moderate leverage. However, the equity ratio shows a declining trend, indicating increased liabilities relative to assets. Return on equity has weakened, reflecting a dip in profitability.

Cash Flow

Operating cash flow has remained relatively stable, but free cash flow is negative due to high capital expenditures. The free cash flow to net income ratio indicates potential cash flow challenges impacting liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.29B	55.54B	50.41B	60.41B	49.36B	48.14B
Gross Profit	32.39B	29.65B	25.01B	31.81B	26.87B	26.14B
EBITDA	12.29B	10.34B	7.63B	16.06B	14.18B	15.50B
Net Income	5.09B	3.58B	1.61B	7.90B	8.28B	9.84B
Balance Sheet
Total Assets	0.00	93.36B	83.87B	76.60B	69.68B	57.51B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.44B	1.42B	484.60M	759.40M	484.60M
Total Debt	0.00	27.64B	25.77B	20.15B	17.77B	14.82B
Total Liabilities	-46.03B	47.33B	42.71B	36.12B	36.09B	31.50B
Stockholders Equity	46.03B	44.73B	41.11B	40.38B	33.51B	25.98B
Cash Flow
Free Cash Flow	0.00	-393.50M	-126.20M	37.40M	342.60M	442.30M
Operating Cash Flow	0.00	6.02B	6.66B	9.94B	9.11B	7.33B
Investing Cash Flow	0.00	-6.82B	-8.22B	-9.96B	-9.14B	-9.41B
Financing Cash Flow	0.00	392.80M	2.50B	-266.40M	302.60M	2.55B

Laurus Labs Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1107.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LAURUSLABS, the sentiment is Negative. The current price of 1107.05 is above the 20-day moving average (MA) of 1047.45, above the 50-day MA of 1039.30, and above the 200-day MA of 855.93, indicating a neutral trend. The MACD of -20.21 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LAURUSLABS.

Laurus Labs Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPCALAB	74 Outperform	₹372.69B	45.21	―	0.28%	9.66%	25.79%
LAURUSLABS	66 Neutral	₹521.02B	62.18	―	0.15%	25.83%	421.20%
BIOCON	63 Neutral	₹593.57B	92.05	―	0.12%	10.62%	-66.88%
GLAND	63 Neutral	₹304.07B	34.99	―	1.07%	-1.51%	14.27%
SUVENPHAR	57 Neutral	₹145.72B	46.90	―	―	88.74%	-14.95%
GLENMARK	53 Neutral	₹569.17B	52.64	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%