BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Laurus Labs Ltd. delivered better-than-expected Q1 FY23 performance fueled by strong growth momentum in the synthesis (contract development and manufacturing organisation) segment.
The company is on track to incur capex in synthesis/bio division/non-antiretroviral formulation to cater to business growth over the next three-five years.
We have tweaked our earnings per share estimates by down 4%/down 3% for FY23/FY24 to factor in higher tax rate. We expect 34% earnings CAGR over FY22-24.
Laurus Labs has delivered 34% earnings CAGR over FY17-22. We believe that it is well placed to sustain the pace of earnings growth by building capabilities as well as capacities to attract:
new customers as well as increase business from existing customers in the CDMO segment, and
non-ARV business as well as bio-division.
Interestingly, the funding requirement for capital investment from internal accruals provides comfort on the balance sheet health.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.