India's Laurus Labs could see decline in earnings, analysts say

Laurus Labs

23/10/2023 07:20

** Shares of Laurus Labs  LAUL.NS  fall as much as 8.6% to
366.65 rupees, their steepest intra day pct fall since May 11
    ** Stock at lowest level since Aug. 3
    ** Indian pharma co on Friday posted a ~84% YoY slump in Q2
profit; rev from ops down 22.3% 
    ** Jefferies says LAUL's EBITDA missed estimates on lower
sales; sees near-term margin headwinds on muted business growth
and slow ramp-up of new projects
    ** Analysts at brokerage SMIFS expect rev contribution from
LAUL's synthesis business to drop to 18% in FY26 from 35% in
FY23 
    ** Brokerage Motilal Oswal sees LAUL's earnings declining
36% Y/Y on price erosion and higher inventory 
    ** Avg rating of 10 analysts tracking stock at "hold";
median PT is 340 rupees - LSEG 
    ** Including day's move, stock up 1.9% YTD vs a 19.2% rise
in Nifty Pharma index  .NIPHARM 
    

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))