Laurus Labs Ltd.
NSE: LAURUSLABSLaurus Labs Ltd.: A 30-second snapshot
Laurus Labs (₹1,388.4) has gained 133.3% over the past 12 months and trades near its 52-week high, sitting 36.7% above the 200-DMA with an RSI of 76.63. The trailing PE of 88.7 is the highest in its pharma peer group, reflecting market expectations of a significant earnings acceleration; the forward PE of 58.2 implies the company is pricing in a near-doubling of earnings power. Debt-to-equity stands at 46.4 with a rising debt trend, and free cash flow has been positive in only 2 of the tracked years.
P/E
88.7
Forward P/E
58.2
ROE
+17.7%
Debt / Equity
46.37
Profit Margin
+13.1%
Div. Yield
+0.2%
5Y ROE > 15%
2/5
5Y FCF > 0
2/5
Quality
39/100
News
3 headlines · 2 positive · 0 negative
Buy Laurus Labs; target of Rs 1370: Motilal Oswal - TradingView
TradingView
Laurus Labs Issues Newspaper Notice on TDS Requirements for 2nd Interim Dividend for FY 2025-26 - scanx.trade
scanx.trade
Dividend stocks: Laurus Labs, Quess Corp, Nalco, Premier Energies to turn ex-date today - Business Today
Business Today
Recent context
- ·Laurus Labs declared a 2nd interim dividend for FY 2025-26 and issued TDS compliance notices in May 2026, with the stock going ex-date alongside several other Pharma names (Business Today, May 2026).
- ·Motilal Oswal published a note on the stock in early May 2026 (TradingView, May 2026); the note title references a specific price level — the stock has since traded above that reference level.
- ·News flow over the tracked period is limited to 3 articles, making it difficult to assess the breadth of analyst and media commentary around the stock at its current valuation levels.
Strengths
- +5-year earnings CAGR of 19.4% outpaces the 5-year revenue CAGR of 5.3%, suggesting operating leverage has improved over the period.
- +ROE of 17.74% ranks 2nd among 6 sector peers reported (above Sun Pharma 14.72%, Cipla 11.74%, Dr. Reddys 11.84%, Max Healthcare 14.33%), with only Apollo Hospitals (21.5%) higher.
- +Price is 36.7% above the 200-DMA and 20.2% above the 50-DMA, with the stock near its 52-week high (drawdown of 0.74%); all three primary technical trend indicators are aligned upward.
- +An interim dividend for FY26 has been declared, indicating management confidence in near-term cash availability despite the broader FCF consistency questions.
Weaknesses
- −Debt-to-equity of 46.4 is elevated relative to pharma sector norms and the debt trend is rising; FCF has been positive in only 2 of the tracked years, which limits the buffer against an earnings shortfall.
- −Trailing PE of 88.7 is the highest among reported peers and the forward PE of 58.2 embeds a material earnings re-rating assumption; if the expected earnings step-up does not materialise, PE compression risk is significant.
- −ROE has exceeded 15% in only 2 of the tracked years and the earnings-consistency score of 9 reflects historically uneven profitability — the current ROE of 17.74% has not been a persistent feature of the business.
- −Quality score of 40 ranks 3rd of 6 peers, sitting below Apollo Hospitals (44) and Sun Pharma (59); overall business-quality metrics are mid-table relative to the sector despite the strong share-price run.
Open questions
- ?Does the 19.4% 5-year earnings CAGR reflect a durable structural shift in Laurus Labs business mix (e.g. formulations vs. APIs), or is it concentrated in a cyclical segment that could revert?
- ?With debt-to-equity at 46.4 and a rising debt trend, what is the maturity profile of current borrowings, and how sensitive is interest coverage to the earnings trajectory implied by the forward PE of 58.2?
- ?The forward PE of 58.2 is approximately 55% above the next-highest peer multiple in the comparison set — what specific near-term earnings catalysts are consensus estimates pricing in?
- ?Given that RSI is at 76.63 and the stock is 0.74% from its 52-week high after a 133% gain, how has the company historically behaved in periods of high valuation relative to its own history (e.g. the 2020-21 cycle)?
Peer comparison: Pharma
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LAURUSLABS | Laurus Labs Ltd.You're viewing | 88.7 | +17.7% | 40 |
| Industry avg | across 5 peers | 43.2 | +14.8% | 36 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 37.5 | +14.7% | 59 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 60.1 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 63.5 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 28.9 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 25.6 | +11.8% | 17 |
Technical state
Current price
₹1,388.40
SMA 50
₹1,154.92
SMA 200
₹1,015.80
RSI (14)
76.6 (overbought)
From 52w high
-0.7%
1Y return
+133.3%
3M return
+35.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 46.4 is extremely elevated for a pharma manufacturer; the debt trend is rising and FCF has been positive in only 2 of the tracked years, raising questions about solvency headroom if earnings growth stalls.
- highRSI at 76.63 is in overbought territory; the stock is up 133.3% over 12 months and 35.0% over 3 months, with a drawdown of only 0.74% from the 52-week high — price is trading 36.0% above the 50-DMA and 36.7% above the 200-DMA.
- mediumTrailing PE of 88.7 is the highest in the reported peer group (Sun Pharma 37.5, Apollo Hospitals 60.1, Cipla 28.9, Dr. Reddys 25.6, Max Healthcare 63.5); the forward PE of 58.2 implies a substantial earnings step-up not yet visible in the 5-year profit margin of 13.1%.
- mediumQuality score of 40 ranks 3rd of 6 peers; ROE has exceeded 15% in only 2 of the tracked years and the earnings-consistency score of 9 reflects historically uneven profitability despite a 5-year earnings CAGR of 19.4%.
- lowNews sample is sparse at 3 articles total; sentiment distribution (2 positive, 1 neutral, 0 negative) may not fully reflect the information environment around a stock up 133% in 12 months.
Cross-section contradictions
- Technical momentum is sharply positive — up 133.3% over 12 months, RSI 76.63, above both moving averages — while fundamental quality ranks 3rd of 6 peers with ROE above 15% in only 2 tracked years and FCF positive in only 2 tracked years; price action and historical financial quality metrics are diverging.
- Earnings CAGR of 19.4% over 5 years and an interim dividend declared for FY26 suggest improving profitability, yet the debt trend is rising and FCF has been positive in only 2 tracked years — it is unclear whether reported earnings are converting to free cash flow.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days