Buy Laurus Labs, target price Rs 395: Axis Securities

Axis Securities has buy call on Laurus Labs with a target price of Rs 395. The current market price of Laurus Labs is Rs 324.85. Axis Securities recommended to keep stop loss at Rs 300.

Laurus Labs, incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 17403.81 Crore) operating in Pharmaceuticals sector.

Laurus Labs key Products/Revenue Segments include Pharmaceutical Products, Traded Goods, Contract Service, Other Operating Revenue, Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1546.25 Crore, down -1.95 % from last quarter Total Income of Rs 1577.00 Crore and up 49.53 % from last year same quarter Total Income of Rs 1034.09 Crore. Company has reported net profit after tax of Rs 203.06 Crore in latest quarter.

The company’s top management includes Dr.M Venu Gopala Rao, Dr.C V Lakshmana Rao, Dr.Satyanarayana Chava, Mr.V V Ravi Kumar, Mr.Chandrakanth Chereddi, Dr.Ravindranath Kancherla, Mrs.Aruna Rajendra Bhinge, Dr.Rajesh Koshy Chandy. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 54 Crore shares outstanding.

Investment Rationale
Strong trend reversal on the daily chart along with huge volumes, well placed above 20 and 50 SMA .

Promoter/FII Holdings
Promoters held 27.2 per cent stake in the company as of 31-Dec-2022, while FIIs owned 21.9 per cent, DIIs 9.51 per cent.