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Laurus Labs Ltd

NSE: LAURUSLABS BSE: 540222

1075.80

(-1.55%)

Sat, 07 Mar 2026, 05:34 pm

Laurus Labs Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (9.6x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (13.4x coverage).
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Cons

  • Dividend payments have increased, but Laurus Labs only paid a dividend in the past 3 years.
  • Whilst dividend payments have been stable, Laurus Labs has been paying a dividend for less than 10 years.
  • Laurus Labs's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Laurus Labs's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Laurus Labs is expected to increase by more than 50% in 2 years time.
  • Laurus Labs's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Laurus Labs's earnings are expected to exceed the low risk growth rate next year.
  • Laurus Labs's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • An improvement in Laurus Labs's performance (ROE) is expected over the next 3 years.
  • Laurus Labs's revenue growth is expected to exceed the India market average.
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Cons

  • Laurus Labs's earnings are expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
  • Laurus Labs's earnings growth is positive but not above the India market average.
  • Laurus Labs's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Laurus Labs is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Laurus Labs's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Laurus Labs's revenue is expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Laurus Labs is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Laurus Labs is profitable, therefore cash runway is not a concern.
  • Laurus Labs is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (32.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.7x debt.
  • Laurus Labs's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (113.8% vs 59.7% today).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
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Cons

  • Laurus Labs's level of debt (59.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Laurus Labs board of directors is about average.
  • Satyanarayana's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Laurus Labs individual insiders in the past 3 months.
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Cons

  • Satyanarayana's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Laurus Labs has significant price volatility in the past 3 months.

    past

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    Pros

    • Laurus Labs's 1-year earnings growth exceeds its 5-year average (172.3% vs 5.4%)
    • Laurus Labs's year on year earnings growth rate has been positive over the past 5 years.
    • Laurus Labs used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Laurus Labs's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (172.3% vs 22.7%).
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    Cons

    • Laurus Labs's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Laurus Labs has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • LAURUSLABS outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
    • LAURUSLABS outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:LAURUSLABS is up 14.7% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:LAURUSLABS is up 14.7% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Laurus Labs's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Laurus Labs's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Laurus Labs is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Laurus Labs is poor value based on expected growth next year.
    • Laurus Labs is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
    • Laurus Labs is overvalued based on earnings compared to the India market.

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