Laurus Labs Upgraded to 'Hold' Rating

Laurus Labs, a largecap pharmaceutical company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 19.79%. Additionally, the company has shown healthy long-term growth, with an annual growth rate of 19.74% in net sales and 34.52% in operating profit.
Technically, the stock is currently in a Mildly Bullish range, with a positive trend since 07-Dec-23 and a return of -1.55% since then. The key technical factor, RSI (Relative Strength Index), has also been Bullish since 07 Dec 2023.

In terms of valuation, Laurus Labs is trading at a discount compared to its average historical valuations, with a ROCE of 11.3 and a 3.7 Enterprise value to Capital Employed. However, the stock has generated a negative return of -6.99% in the past year, with a significant decline of -57.6% in profits.

Despite the company's below par performance in the last 3 consecutive quarters, it still holds a high institutional holding of 35.04%. This indicates that these investors have better capability and resources to analyze the fundamentals of the company.

In the long term, Laurus Labs has underperformed the BSE 500 index, with a return of -6.99% in the last 1 year and underperformance in the last 3 years and 3 months. However, with its upgraded 'Hold' rating and positive technical trend, the stock may see some improvement in the near future.