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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Laurus Labs Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:49 pm

Market Cap 26,365 Cr.
Current Price 489
High / Low518/359
Stock P/E112
Book Value 79.2
Dividend Yield0.16 %
ROCE7.50 %
ROE5.43 %
Face Value 2.00
PEG Ratio-20.97

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Laurus Labs Ltd

Competitors of Laurus Labs Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,465 Cr. 318390/10865.7 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 59.8 Cr. 80.694.9/25.822.9 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 28.0 Cr. 19.119.5/8.3536.3 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 85.5 Cr. 114155/87.012.8 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,221 Cr. 1,0801,335/62031.2 2072.08 %28.1 %21.1 % 2.00
Industry Average19,460.76 Cr1,177.0554.20184.880.33%16.40%16.92%6.61

All Competitor Stocks of Laurus Labs Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,2721,3991,2211,1769331,3781,4951,4981,5011,2791,1081,1581,132
Expenses8589368588427171,0051,0771,0721,1161,027980978962
Operating Profit415462363334215373418426385252128181170
OPM %33%33%30%28%23%27%28%28%26%20%12%16%15%
Other Income96847234367611
Interest17212521212928383941333838
Depreciation49515559606166767881848587
Profit before tax357396290258142285328317270137176357
Tax %25%26%23%24%23%22%29%28%26%25%24%26%25%
Net Profit267293222198109221232227199102134743
EPS in Rs4.985.464.143.682.034.124.314.233.701.900.240.870.79

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4517191,1601,3261,7751,8922,0272,2362,7974,7694,7075,7734,677
Expenses3735739511,1211,4021,4781,6181,8842,2263,2583,4214,2923,946
Operating Profit781452092053724144093525711,5111,2861,482731
OPM %17%20%18%15%21%22%20%16%20%32%27%26%16%
Other Income159344322815526201629
Interest404164106111977586886696146150
Depreciation1823336186104121161184197235301337
Profit before tax2286121721802452411213041,2759751,051274
Tax %0%-2%20%-2%19%18%28%22%12%25%23%28%
Net Profit2288977414520017395267956750760205
EPS in Rs2.8311.5812.649.4718.363.783.271.785.0017.8213.9614.123.80
Dividend Payout %0%0%0%0%2%8%9%17%10%11%14%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)300.00%10.23%-23.71%95.95%37.93%-13.50%-45.09%181.05%258.05%-21.55%1.33%
Change in YoY Net Profit Growth (%)0.00%-289.77%-33.94%119.66%-58.01%-51.43%-31.59%226.14%77.00%-279.60%22.88%

Laurus Labs Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:17%
3 Years:0%
TTM:-4%
Compounded Profit Growth
10 Years:9%
5 Years:19%
3 Years:-38%
TTM:-35%
Stock Price CAGR
10 Years:%
5 Years:49%
3 Years:1%
1 Year:31%
Return on Equity
10 Years:18%
5 Years:20%
3 Years:16%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:38 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15151616106106106107107107108108108
Reserves1822816457901,2501,4071,4841,7092,6053,2813,9494,0994,162
Borrowings3556058881,0818089471,0091,0511,4111,6531,7142,1102,341
Other Liabilities1503723443425095477188721,5021,5671,1871,3511,478
Total Liabilities7011,2731,8932,2292,6733,0083,3183,7395,6256,6096,9587,6678,088
Fixed Assets2364998011,0141,1931,4481,5991,6941,8182,1862,8843,0362,906
CWIP731161077014316310767324755357156255
Investments-00192651525858319362384635635
Other Assets3936589661,1191,2861,3451,5541,9203,1643,3063,3333,8414,292
Total Assets7011,2731,8932,2292,6733,0083,3183,7395,6256,6096,9587,6678,088

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +88121-59197321369293345694823882659
Cash from Investing Activity +-124-312-406-315-282-417-257-217-900-837-735-757
Cash from Financing Activity +3420348690-4749-37-12724315-185139
Net Cash Flow-21221-27-80-00382-3941

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow78.00-210.00-396.00-683.00371.00-394.00-538.00351.00570.000.000.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days80617891108100112102989894124
Inventory Days138165210177184199201233257279211258
Days Payable1171141019111010614415719414090151
Cash Conversion Cycle101112187177183193169177161237216231
Working Capital Days9348119117126124116119127140138175
ROCE %27%25%15%17%17%14%8%14%38%23%22%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters27.27%27.27%27.27%27.27%27.20%27.20%27.20%27.20%27.18%27.18%27.18%27.18%
FIIs22.08%22.45%21.98%22.67%21.90%22.42%22.52%24.03%25.39%25.98%25.67%26.08%
DIIs6.90%7.93%9.11%9.34%9.51%9.74%10.36%11.01%11.13%11.78%13.56%13.05%
Public43.76%42.36%41.65%40.74%41.38%40.64%39.93%37.75%36.30%35.07%33.59%33.69%
No. of Shareholders4,67,4194,27,4654,07,1863,90,6954,23,9314,18,6154,17,9774,02,6403,82,8803,56,8303,24,0593,09,063

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Midcap Fund4,110,0341.26148.681,589,9772024-11-20158.5%
Kotak Emerging Equity Fund - Regular Plan2,828,9620.3102.341,589,9772024-11-2077.92%
PGIM India Midcap Opportunities Fund2,530,0001.0191.521,589,9772024-11-2059.12%
Franklin India Prima Fund2,422,3581.0387.631,589,9772024-11-2052.35%
Sundaram Mid Cap Fund2,119,6990.976.681,589,9772024-11-2033.32%
Sundaram Mid Cap Fund - Institutional Plan2,119,6990.976.681,589,9772024-11-2033.32%
Bandhan Sterling Value Fund1,700,0000.9261.51,589,9772024-11-206.92%
Bandhan ELSS Tax Saver Fund1,600,0001.1557.881,589,9772024-11-200.63%
Axis Small Cap Fund1,589,9770.3557.521,589,9772024-11-200%
Franklin India Equity Advantage Fund1,100,0001.4339.791,589,9772024-11-20-30.82%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.0010.00
Basic EPS (Rs.)2.9814.6915.4218.3623.93
Diluted EPS (Rs.)2.9714.6415.4218.2823.93
Cash EPS (Rs.)10.2620.8120.1722.1641.39
Book Value[Excl.RevalReserv]/Share (Rs.)76.3675.1662.5148.47165.53
Book Value[Incl.RevalReserv]/Share (Rs.)76.3675.1662.5148.47165.53
Revenue From Operations / Share (Rs.)93.53112.1491.8589.70264.86
PBDIT / Share (Rs.)14.9129.6726.7229.3453.36
PBIT / Share (Rs.)7.7823.6522.0425.5235.84
PBT / Share (Rs.)4.3920.5920.1724.2527.46
Net Profit / Share (Rs.)3.1214.7915.4918.3323.88
NP After MI And SOA / Share (Rs.)2.9814.6715.4018.3323.88
PBDIT Margin (%)15.9426.4529.0932.7020.14
PBIT Margin (%)8.3121.0923.9928.4413.53
PBT Margin (%)4.6818.3521.9527.0310.36
Net Profit Margin (%)3.3313.1816.8620.439.01
NP After MI And SOA Margin (%)3.1813.0816.7620.439.01
Return on Networth / Equity (%)3.9019.5624.6937.8614.42
Return on Capital Employeed (%)7.9424.3727.6341.5718.62
Return On Assets (%)1.9110.3111.8717.106.80
Long Term Debt / Equity (X)0.190.180.170.160.09
Total Debt / Equity (X)0.600.480.510.500.53
Asset Turnover Ratio (%)0.620.820.761.020.79
Current Ratio (X)1.231.421.251.251.07
Quick Ratio (X)0.630.730.590.610.53
Inventory Turnover Ratio (X)1.371.511.401.952.04
Dividend Payout Ratio (NP) (%)53.6713.6010.377.6212.53
Dividend Payout Ratio (CP) (%)15.809.647.956.317.23
Earning Retention Ratio (%)46.3386.4089.6392.3887.47
Cash Earning Retention Ratio (%)84.2090.3692.0593.6992.77
Interest Coverage Ratio (X)4.399.6814.2623.106.37
Interest Coverage Ratio (Post Tax) (X)1.925.829.2715.433.85
Enterprise Value (Cr.)23483.3917717.0933370.2920697.574402.84
EV / Net Operating Revenue (X)4.662.936.764.301.55
EV / EBITDA (X)29.2111.0923.2413.157.72
MarketCap / Net Operating Revenue (X)4.192.616.424.041.22
Retention Ratios (%)46.3286.3989.6292.3787.46
Price / BV (X)5.143.919.467.481.95
Price / Net Operating Revenue (X)4.192.616.424.041.22
EarningsYield0.010.050.020.050.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Laurus Labs Ltd as of November 21, 2024 is: 482.43

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Laurus Labs Ltd is Overvalued by 1.34% compared to the current share price 489.00

Intrinsic Value of Laurus Labs Ltd as of November 21, 2024 is: 456.66

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Laurus Labs Ltd is Overvalued by 6.61% compared to the current share price 489.00

Last 5 Year EPS CAGR: -5.34%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.00%, which is a positive sign.
  2. The company has higher reserves (1,988.00 cr) compared to borrowings (1,228.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (92.08 cr) and profit (203.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 120.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 178.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Laurus Labs Ltd:
    1. Net Profit Margin: 3.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.94% (Industry Average ROCE: 16.4%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 3.9% (Industry Average ROE: 16.92%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.92
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.63
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 112 (Industry average Stock P/E: 54.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.6
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Laurus Labs Ltd. is a Public Limited Listed company incorporated on 19/09/2005 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24239AP2005PLC047518 and registration number is 047518. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 4707.04 Cr. and Equity Capital is Rs. 107.47 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsLaurus Enclave, Plot Office 01, Edulapakabonangi Village, Vishakapatnam Andhra Pradesh 531021secretarial@lauruslabs.com
https://www.lauruslabs.com
Management
NamePosition Held
Dr. Ravindranath KancherlaNon Exe.Chairman&Ind.Director
Mr. V V Ravi KumarExecutive Director & CFO
Dr. Satyanarayana ChavaExecutive Director & CEO
Dr. C V Lakshmana RaoExecutive Director
Mr. Krishna Chaitanya ChavaExecutive Director
Ms. Soumya ChavaExecutive Director
Dr. Rajesh Koshy ChandyIndependent Director
Mrs. Aruna Rajendra BhingeIndependent Director
Mr. Karnam SekarIndependent Director

FAQ

What is the latest intrinsic value of Laurus Labs Ltd?

The latest intrinsic value of Laurus Labs Ltd as on 21 November 2024 is ₹482.43, which is 1.34% lower than the current market price of ₹489.00.

What is the Market Cap of Laurus Labs Ltd?

The Market Cap of Laurus Labs Ltd is 26,365 Cr..

What is the current Stock Price of Laurus Labs Ltd as on 21 November 2024?

The current stock price of Laurus Labs Ltd as on 21 November 2024 is ₹489.

What is the High / Low of Laurus Labs Ltd stocks in FY 2024?

In FY 2024, the High / Low of Laurus Labs Ltd stocks is 518/359.

What is the Stock P/E of Laurus Labs Ltd?

The Stock P/E of Laurus Labs Ltd is 112.

What is the Book Value of Laurus Labs Ltd?

The Book Value of Laurus Labs Ltd is 79.2.

What is the Dividend Yield of Laurus Labs Ltd?

The Dividend Yield of Laurus Labs Ltd is 0.16 %.

What is the ROCE of Laurus Labs Ltd?

The ROCE of Laurus Labs Ltd is 7.50 %.

What is the ROE of Laurus Labs Ltd?

The ROE of Laurus Labs Ltd is 5.43 %.

What is the Face Value of Laurus Labs Ltd?

The Face Value of Laurus Labs Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Laurus Labs Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE