Laurus Labs Ltd

NSE: LAURUSLABS BSE: 540222

₹1419.80

(0.32%)

Mon, 15 Jun 2026, 06:42 pm

Market Cap (in Cr)75825.56

PE Ratio86.30

Dividend0.14

Health Technology

Pharmaceuticals: Major

24.5K

Laurus Labs Analysis

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).

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%).

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.

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).

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).

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.

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.

Cons

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

Pros

Cons

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%).

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%).

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.

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.