Laurus Labs Stock Hits All-Time High Amid Strong Performance

Strong Momentum Drives New Peak

The stock of Laurus Labs recorded an intraday high of Rs.1041.2, representing a 2.57% rise on the day and outperforming its sector by 2.41%. Over the last three consecutive trading sessions, the stock has delivered a cumulative return of 4.02%, signalling consistent upward momentum. This performance is underscored by a day change of 2.31%, which notably exceeds the Sensex’s 0.61% movement on the same day.

Volatility has been elevated, with an intraday volatility of 34.65% calculated from the weighted average price, indicating active trading and investor engagement. Laurus Labs is currently trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, a technical indicator often associated with sustained bullish trends.

Outperformance Across Multiple Timeframes

Examining the stock’s performance over various periods reveals a pattern of market-beating returns. Over the past one year, Laurus Labs has delivered an 81.35% return, significantly outpacing the Sensex’s 7.29% during the same timeframe. Year-to-date returns stand at 72.42%, compared to the Sensex’s 8.78%. The stock’s three-month performance of 11.47% also surpasses the Sensex’s 2.87%, while the one-month return of 5.19% contrasts with the Sensex’s slight decline of 0.22%.

Longer-term figures further highlight the company’s growth trajectory. Over three years, the stock has appreciated by 167.82%, compared to the Sensex’s 37.52%, and over five years, it has recorded a 193.35% return against the Sensex’s 80.99%. These figures demonstrate Laurus Labs’ ability to generate substantial value over extended periods within the Pharmaceuticals & Biotechnology sector.

Financial Performance Highlights

Laurus Labs’ recent quarterly results illustrate a strong financial foundation. The company reported a Profit Before Tax excluding other income (PBT less OI) of Rs.242.77 crores, reflecting a growth of 1233.17% compared to previous periods. Net Profit After Tax (PAT) for the quarter stood at Rs.194.97 crores, showing an increase of 882.7%. Operating profit to interest ratio reached a high of 10.08 times, indicating a comfortable coverage of interest expenses by operating earnings.

Over the last four consecutive quarters, Laurus Labs has consistently declared positive results, underscoring steady operational performance. The company’s Return on Capital Employed (ROCE) is reported at 16.75%, a figure that signals efficient management of capital resources and operational effectiveness within the Pharmaceuticals & Biotechnology sector.

Institutional Confidence and Market Position

Institutional investors hold a significant stake in Laurus Labs, accounting for 37.63% of shareholdings. This level of institutional participation often reflects thorough fundamental analysis and confidence in the company’s financial health and market position. The stock’s market capitalisation grade is noted as 2, situating it within the mid-cap segment of the market.

Comparative analysis shows that Laurus Labs has outperformed the BSE500 index over the last three years, one year, and three months, reinforcing its status as a strong performer in its sector and the broader market.

Valuation and Growth Considerations

While Laurus Labs has demonstrated strong profit growth, with net profit rising by 993.4% in recent periods, the company’s operating profit has grown at an annual rate of 5.37% over the past five years. This suggests a more moderate expansion in core operating earnings relative to net profit growth.

The company’s Return on Capital Employed (ROCE) stands at 14.9%, accompanied by an enterprise value to capital employed ratio of 8.2. These metrics indicate a valuation that is considered very expensive relative to capital employed, although the stock currently trades at a discount compared to its peers’ average historical valuations.

Over the past year, Laurus Labs’ profits have risen by 421.7%, while the stock has generated an 81.35% return, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.2. This figure provides insight into the relationship between valuation and earnings growth.

Market Context and Sector Positioning

Operating within the Pharmaceuticals & Biotechnology sector, Laurus Labs has established itself as a notable player with a market capitalisation that places it among mid-cap companies. The sector itself has experienced varied performance, but Laurus Labs’ consistent gains and financial metrics highlight its relative strength.

The stock’s ability to maintain trading levels above key moving averages and its outperformance relative to the Sensex and sector indices over multiple timeframes reflect a resilient market position. This is further supported by the company’s positive quarterly results and institutional backing.

Summary of Key Metrics

To summarise, Laurus Labs’ stock has reached a new peak of Rs.1041.2, supported by:

• Consistent gains over the last three days with a 4.02% return


• Outperformance against Sensex and sector indices across daily, weekly, monthly, quarterly, and yearly periods


• Strong quarterly financial results with significant growth in profit before tax and net profit


• High return on capital employed at 16.75%


• Substantial institutional shareholding at 37.63%


• Trading above all major moving averages, indicating positive technical momentum

These factors collectively contribute to the stock’s all-time high, marking a notable achievement for Laurus Labs within the Pharmaceuticals & Biotechnology sector.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Start Saving Now →