&w=3840&q=100)
Laurus rallies 6%, hits new high on strong Q1; brokerages see more upside
Shares of Laurus Labs hit a new high of ₹889.3, surging 6 per cent on the BSE in Monday's intra-day trade in an otherwise subdued market after the company reported strong earnings for the June 2025 quarter (Q1FY26). The BSE Sensex was up 0.06 per cent at 81,512 at 10:20 AM.
In the past one month, the stock of pharmaceutical company has outperformed the market by soaring 27 per cent, as compared to 2.7 per cent decline in the BSE Sensex. It has zoomed 128 per cent from its 52-week low of ₹390.30 on August 8, 2024.
Laurus Labs - Q1FY26 performance, outlook
Laurus delivered a solid performance in Q1, in line with market expectations. The management said they are pleased to see sustained growth momentum fueled by increasing uptake in the contract development and manufacturing organisation (CDMO) deliveries and healthy business fundamentals.
The company has achieved revenues of ₹1,570 crore, representing 31 per cent year-on-year (YoY) growth and earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹389 crore, representing 127 per cent growth. The EBITDA margins improved substantially to 24.8 per cent, from 14.3 per cent in Q1FY25, supported by continuing operating leverage. Gross margins stood strong at 59.4 per cent due to favorable CDMO mix and ongoing process improvement initiatives. Profit after tax stood ₹161.1 crore, driven by a favorable product mix and strong operational performance.
Laurus has made a healthy progress to start the year with increasing contributions from the CDMO business and continued advancement of pipeline projects, supported by Generic Formulation (FDF). The management said the company is moving ahead with strong focus on commercial execution realizing the full potential from promising pipeline opportunities, business development and rapidly enhancing scale and technology capabilities. ALSO READ |
Brokerages firm see more upside in stock price of Laurus
The CDMO growth was driven by several mid-to-late stage NCE deliveries and steady increase in sales from new manufacturing assets. Out of ₹3,200 core of capex that the company has incurred during FY22-25, almost ~75 per cent was earmarked towards active pharmaceutical ingredient (API) / CDMO. The company is now getting the benefit of the same as the CDMO quarterly run rate has gone up from ₹220-250 crore to ₹450-500 crore in two years. The CDMO contribution has also gone up from ~16 per cent to 33 per cent which has led to a significant margin expansion.
ICICI Securities said they continue to monitor progress on these driving factors which in a way are expected to change the business mix in favour of these segments in lieu of anti-retroviral (ARV).
Analysts at Choice Equity Broking believe Laurus is evolving from a traditional Generics player to a CDMO (Synthesis)–led model, with the segment targeted to reach ~50 per cent of revenues in the long term. Given the higher-margin profile of CDMO and operating leverage as new manufacturing assets ramp and current underutilization narrows, the brokerage firm expects sustained margin expansion. Analysts maintain 'buy' rating on the stock with revised target price of ₹1,025 against previous target price of ₹750.
Motilal Oswal Financial Services raise earnings estimates by 16 per cent/7 per cent for FY26/FY27, factoring in strong tailwinds in CDMO segment led by 110+ active pipeline projects/ramp-up from new manufacturing facilities, additional contracts in generic FDF segment, and margin expansion from scale. Considering a 63 per cent earnings compounded annual growth rate (CAGR) over FY25-27, the brokerage firm value Laurus at 56x 12M forward earnings to arrive at a target price of ₹970. Reiterate BUY.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
25 minutes ago
- Indian Express
Govt to invite financial bids for IDBI stake sale by December: DIPAM Secretary
The government is working towards inviting financial bids for strategic stake sale in IDBI Bank by December with interested buyers having completed due diligence and data room norms, Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM) said on Friday. The successful bidder will be announced by March 2026, he added. The long-pending stake sale process of IDBI Bank will be closely eyed as the government kickstarts the disinvestment process for the bank after being in the works for close to three years. 'Due diligence and data room protocols have been completed for all the interested parties. Also, formal consultations have been completed with qualified interested parties. We hope to invite financial bids in the third quarter of this financial year,' Chawla said, adding that once the financial bids come in and a successful bidder is selected, it will be sent to the Reserve Bank of India (RBI) for final 'fit and proper' clearance. The prospective buyer of IDBI Bank has already been granted security clearance by the Ministry of Home Affairs (MHA) and cleared fit and proper evaluation by the RBI. Along with the Life Insurance Corporation (LIC), the government had in October 2022, invited expression of interest (EoI) from investors for privatising IDBI Bank by selling a total of 60.72 per cent stake. This includes a 30.48 per cent stake of the Government of India and 30.24 per cent of LIC. In January 2023, it received multiple EoIs for IDBI Bank. On Friday, shares of IDBI Bank ended at Rs 90.17 on Friday, down 2.68 per cent from the previous close on the BSE. What are Centre's plans for LIC divestment? For the other major pending disinvestment proposal for LIC which also has been in the pipeline, Chawla said the government has appointed merchant bankers and legal advisors for minority stake sale in LIC, and other public sector financial institutions. 'As far as LIC is concerned, we have completed the RFP (request for proposal) process. The process for appointment of merchant bankers and legal advisors has been completed,' Chawla said. Earlier this year, in February, DIPAM had invited bids from merchant bankers and legal firms to assist the government in divesting its stake in public sector banks and listed financial institutions. As per the two RFPs (request for proposal) floated by DIPAM, the merchant bankers and legal advisors would be empanelled for a period of three years, which could be extended by one more year. 'Individual transactions can happen anytime over the next 3 years,' Chawla said. The government currently holds 96.5 per cent stake in LIC. It had sold 3.5 per cent through an initial public offering in May 2022 at a price band of Rs 902-949 a share that yielded around Rs 21,000 crore. The government needs to offload another 6.5 per cent stake in the public sector life insurer to meet the mandated 10 per cent public shareholding requirement by May 16, 2027. Banks and financial institutions need to meet the minimum 25 per cent public shareholding norm as mandated by the market regulator Sebi. Five PSU banks are yet to meet the minimum public shareholding norm. The government has set August 1, 2026 as the deadline for such non-compliant entities to reduce government holding and meet public float norms. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
Mint
2 hours ago
- Mint
Delhivery bets on rapid commerce for growth, logs ₹91 crore net profit in Q1
Logistics major Delhivery is accelerating its push into new-age delivery models, capitalizing on the rise of quick commerce and expanding its partial truckload (PTL) capabilities. In the first quarter (April-June) of FY26, the company made strategic investments of ₹ 14 crore into two emerging services: Rapid Commerce, a 2-hour delivery service, and Delhivery Direct, which is an on-demand intracity shipment service. 'The real opportunity lies in servicing large brands working with quick commerce platforms—whether FMCG, grocery, or packaged food by offering high-precision, appointment-based deliveries to—and returns from—dark stores and mother warehouses. Quick commerce has created a new channel and incremental demand. Though our entry is just 100 days old, it's already become an exciting growth driver within our PTL business,' said Sahil Barua, chief executive of Delhivery, in an April-June earnings call on Friday. Delhivery reported a 68.5% surge in net profit in April-June to ₹ 91 crore. The company's operating revenue increased by 6% year-on-year to ₹ 2,294 crore. Shares of Delhivery settled 1% lower at ₹ 429.85 apiece on the BSE on Friday. A partial truckload business is a logistics service model that sits between LTL (less-than-truckload) and FTL (full truckload). It caters to medium-sized shipments that don't require an entire truck but are too large or bulky for standard parcel delivery. He added that quick commerce, however, remains largely concentrated in grocery, packaged foods, and BPC (beauty and personal care) segments, and is primarily active in major urban centres. While it has likely had a notable effect on grocery GMV (gross merchandise value) and order volumes for large marketplaces, its influence on broader e-commerce is expected to be limited. This is due to the inherent challenge of balancing wide product assortments with rapid delivery timelines, especially across increasingly dispersed urban geographies. More significantly, the bulk of e-commerce volumes comes from small cities (tier 2–4) and is fuelled by low-velocity, long-tail categories like apparel, accessories, and home and lifestyle products. These categories have unpredictable demand patterns and are not easily or economically suited to stocking in small quantities across dark stores. As a result, the company expects minimal impact from quick commerce on their overall volume trajectory moving forward. Low-velocity, long-tail refers to slower-selling, niche products like apparel that have unpredictable demand but collectively drive a large share of e-commerce volumes, especially in small cities. Delhivery's Rapid network currently operates 20 dark stores across three cities, offering shared inventory infrastructure and 1–3 hour fulfillment for direct-to-consumer brands. Plans are in place to scale this to 35–40 dark stores across six cities by Q4 FY26. While expected to remain a niche offering within Delhivery's broader Express portfolio, Rapid could generate ₹ 80–100 crore in revenue over time, the company said in a shareholder's letter. 'The network will serve as a foundation for Rapid B2B fulfillment, targeting time-critical segments such as auto parts, electronics spares, tyres, specialty chemicals, lubricants, and select FMCG products,' Barua said during the earnings call. Delhivery Direct, the company's consumer-facing app for on-demand inter-city shipping, has now expanded to include intra-city delivery as well. As these offerings are still in early stages, further investment—particularly in fleet capacity and demand generation for Delhivery Direct—is expected through FY26, said Barua. In January-March of FY25, Delhivery turned profitable for the first time, posting a net profit of ₹ 72.6 crore as revenue rose 6% year-on-year. Delhivery acquired rival logistics firm Ecom Express in an all-cash deal worth ₹ 1,407 crore in April. 'Obvious immediate impact of the Ecom acquisition will be clear in the Q2 numbers', said Barua.
The Print
2 hours ago
- The Print
Markets extend losses on global sell-off amid US tariff concerns; Sensex tanks 586 points
As many as 2,712 stocks declined while 1,306 advanced and 151 remained unchanged on the BSE. Besides, persistent selling by foreign investors added to the gloom, according to experts. In a volatile trade, the 30-share BSE Sensex tumbled 585.67 points or 0.72 per cent to settle at 80,599.91. During the day, it dropped 690.01 points or 0.84 per cent to 80,495.57. Mumbai, Aug 1 (PTI) Equity benchmark indices Sensex and Nifty declined sharply for the second straight session on Friday, tracking deep losses in pharma, metal, and IT stocks amid trade-related concerns and widespread selling pressure in global markets. The 50-share NSE Nifty declined 203 points or 0.82 per cent to 24,565.35. 'The benchmark index Nifty wrapped up its fifth consecutive week in the red — its longest losing streak since August 2023, raising eyebrows across the street…Despite making multiple attempts to scale up, the index has struggled to hold ground, only to be met with selling pressure each time. The long upper wicks are a telling story — bulls tried, but bears had the final say,' Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities, said. On the weekly front, the BSE benchmark tanked 863.18 points or 1.05 per cent, and the Nifty dropped 271.65 points or 1.09 per cent. 'The Indian equity market extended its decline for a second day, pressured by renewed tariff threats and punitive duties that could undermine India's global trade competitiveness. Investor sentiment weakened further as FIIs now hold the second-highest net short position in derivatives, reflecting elevated caution. 'Globally, markets turned negative amid rising US inflation and trade tensions. While the sell-off was broad-based, FMCG stocks emerged as a defensive play, supported by attractive valuations, resilient demand, and relative immunity to external trade disruptions,' Vinod Nair, Head of Research, Geojit Investments Limited, said. US President Donald Trump unveiled sweeping new tariffs on dozens of countries, including 25 per cent duties for goods from India, marking a new era of American protectionism that triggered fresh tensions and concerns over a much wider disruption in the global trade landscape. From the Sensex firms, Sun Pharma tumbled 4.43 per cent after the company reported a 20 per cent year-on-year decline in consolidated net profit to Rs 2,279 crore for the first quarter ended June 30, 2025. Tata Steel, Maruti, Tata Motors, Infosys, Bharti Airtel and Tech Mahindra were also among the laggards. However, Trent, Asian Paints, Hindustan Unilever, ITC, Kotak Mahindra Bank, and Reliance Industries were the gainers. The BSE smallcap gauge dropped 1.59 per cent, and the midcap index declined by 1.37 per cent. Healthcare tanked 2.44 per cent, telecommunication (2.41 per cent), metal (1.94 per cent), oil & gas (1.91 per cent), teck (1.83 per cent), IT (1.81 per cent), and realty (1.78 per cent). BSE FMCG index emerged as the only gainer. 'Markets began the August series on a negative note, extending the prevailing corrective trend, and ended lower by over half a per cent. Markets continue to grapple with a mixed earnings season, while the recent tariff announcement and persistent foreign fund outflows are further weighing on sentiment,' Ajit Mishra – SVP, Research, Religare Broking Ltd, said. The US president signed an executive order on Thursday that raised tariffs for over five dozen countries, with Washington's negotiations for trade deals going down to the wire ahead of the August 1 deadline. In the Executive Order titled 'Further Modifying The Reciprocal Tariff Rates', Trump announced tariff rates for nearly 70 nations. A 25 per cent 'Reciprocal Tariff, Adjusted' has been imposed on India, according to the list released. The order, however, does not mention the 'penalty' that Trump had said India would have to pay because it purchases Russian military equipment and energy. While August 1 was the tariff deadline, the new levies will come into effect from August 7. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,588.91 crore on Thursday, according to exchange data. 'Global equity markets were mostly weak over the past week, as the US tariff saga continued. The Indian equity market continued to underperform global equity markets in the past week and was down 0.8 per cent over this period,' Shrikant Chouhan, Head – Equity Research, said. In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled lower. Equity markets in Europe were trading in the red. The US markets ended in negative territory on Thursday. Global oil benchmark Brent crude declined 0.39 per cent to USD 71.42 a barrel. On Thursday, the Sensex declined 296.28 points or 0.36 per cent to settle at 81,185.58. The Nifty dropped 86.70 points or 0.35 per cent to 24,768.35. PTI SUM SUM BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
