Stock Performance and Market Comparison
The stock’s recent surge has been notable, with a day gain of 1.53% outperforming the Sensex, which declined by 0.16% on the same day. Over the past week, Laurus Labs has delivered a 2.23% return compared to the Sensex’s negative 0.35%. The momentum is even more pronounced over longer periods, with the stock appreciating 10.42% in the last month and an impressive 31.27% over the past three months, vastly outperforming the Sensex’s 3.66% gain in the same timeframe.
Year-on-year, Laurus Labs has generated a remarkable 84.90% return, dwarfing the Sensex’s 8.60% increase. Over three and five years, the stock has delivered 203.08% and 220.89% returns respectively, compared to the Sensex’s 41.78% and 76.58%. These figures highlight the company’s consistent ability to outperform the broader market and its sector peers.
The stock is currently trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling strong technical momentum and investor confidence in its trajectory.
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Financial Strength and Profitability Metrics
Laurus Labs’ financial performance has been a key driver behind its stock appreciation. The company reported a net profit growth of 993.4% in the quarter ending September 2025, marking a very positive earnings trend. This follows four consecutive quarters of positive results, reinforcing the company’s earnings stability and growth trajectory.
Profit before tax excluding other income (PBT LESS OI) for the quarter stood at Rs.242.77 crores, reflecting a staggering growth of 1233.17%. Similarly, the profit after tax (PAT) reached Rs.194.97 crores, up by 882.7% compared to previous periods. The operating profit to interest ratio for the quarter was an impressive 10.08 times, indicating strong operational efficiency and healthy coverage of interest expenses.
Management efficiency is further demonstrated by a high return on capital employed (ROCE) of 16.75%, which remains a critical metric for assessing the company’s ability to generate profits from its capital base.
Institutional Confidence and Market Position
Institutional investors hold a significant 37.63% stake in Laurus Labs, reflecting strong confidence from entities with extensive resources and analytical capabilities. This level of institutional holding often correlates with a well-regarded fundamental profile and long-term investment appeal.
The company’s market capitalisation grade stands at 2, indicating a mid-cap status within the Pharmaceuticals & Biotechnology sector. The Mojo Score of 77.0 and a current Mojo Grade of Buy (downgraded from Strong Buy on 9 June 2025) provide a nuanced view of the stock’s valuation and momentum within the MarketsMOJO framework.
Valuation and Growth Considerations
Despite the strong recent performance, Laurus Labs’ long-term operating profit growth has been modest, with an annualised rate of 5.37% over the past five years. This suggests that while recent quarters have been exceptional, the company’s growth has been more measured over a longer horizon.
The stock’s valuation metrics indicate a relatively expensive position, with a ROCE of 14.9 and an enterprise value to capital employed ratio of 9. However, it is trading at a discount compared to its peers’ average historical valuations, which may reflect market caution or sector-specific factors.
Over the past year, profits have risen by 421.7%, outpacing the stock’s 84.90% return, resulting in a price-to-earnings-growth (PEG) ratio of 0.2. This low PEG ratio suggests that the stock’s price appreciation has not fully caught up with its earnings growth, a factor often considered in valuation assessments.
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Sector and Market Context
Laurus Labs operates within the Pharmaceuticals & Biotechnology sector, a space characterised by innovation, regulatory complexity, and evolving market dynamics. The company’s ability to sustain gains above all major moving averages and outperform both its sector and the broader market indices highlights its competitive positioning.
The stock’s outperformance relative to the BSE500 index over the last three years, one year, and three months further emphasises its leadership within the mid-cap pharmaceutical segment. This sustained market-beating performance is a testament to the company’s strategic execution and financial discipline.
Summary of Key Metrics
To encapsulate, Laurus Labs Ltd’s stock has reached Rs.1131.2, its highest ever price, driven by:
- Strong quarterly profit growth with PAT up 882.7% and PBT excluding other income up 1233.17%
- High management efficiency with ROCE at 16.75%
- Robust institutional ownership at 37.63%
- Consistent positive quarterly results over four consecutive quarters
- Outperformance against Sensex and sector indices across multiple timeframes
- Trading above all key moving averages, signalling positive technical momentum
While the company’s long-term operating profit growth remains moderate and valuation metrics suggest a premium, the stock’s recent trajectory and financial strength have culminated in this all-time high, marking a significant milestone in its market journey.
Conclusion
Laurus Labs Ltd’s ascent to a new all-time high price of Rs.1131.2 on 7 Jan 2026 reflects a combination of strong earnings growth, operational efficiency, and favourable market positioning within the Pharmaceuticals & Biotechnology sector. The stock’s sustained outperformance relative to benchmarks and its solid fundamentals underscore the significance of this achievement in the company’s ongoing development.
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