India's Laurus Labs falls; analysts flag weakness in upbeat Q4 results

Laurus Labs

25/04/2025 07:51

** Shares of Laurus Labs LAUL.NS fall as much as 6%, last down 2.8% at 627 rupees

** On the day, Nifty pharma index .NIPHARM down 2.6% amid broader market decline driven by geopolitical concerns

** Co's Q4 earnings beat estimates, but analysts flag weaknesses

** Bob Capital Markets flags decline in sales of active pharmaceutical ingredients (API), expects generics API, which make up 40% of sales, to decline at 8% CAGR during FY25-27

** Adds, 25% core profit margin lower than industry peers, who operate at 35% and above

** Jefferies maintains 'underperform', adds ~13% y/y growth in co's larger anti retrovirus business is a drag on momentum, with the smaller contract drug manufacturing business Q4 growth at 95% y/y

** Laurus, rated 'hold' on average by analysts, per data compiled by LSEG, up 45% in the last 12 months

(Reporting by Ananta Agarwal in Bengaluru)

((Ananta.Agarwal@thomsonreuters.com))