Laurus Labs Ltd.
Pharma · NSE
52-week range
₹571 – ₹1,238
From 52w high
-0.8%
RSI (14)
72.8
vs SMA 50 / 200
↑ 50 · ↑ 200
Laurus Labs (LAURUSLABS) is a Hyderabad-based pharma manufacturer trading at ₹1,232.5 as of May 2026, up 102.5% over the past 12 months and within 0.5% of its 52-week high. The stock carries a trailing PE of 79.0 against a forward PE of 51.3, with 5-year earnings CAGR of 19.4% and a profit margin of 12.94%, while debt-to-equity stands at an elevated 46.4 with a rising debt trend.
- ✓5-year earnings CAGR of 19.4% indicates sustained top-line translation to bottom-line growth, with revenue also growing at 6% over the same period.
- ✓ROE of 17.74% ranks first among the 6 sector peers where ROE data is available, ahead of Dr. Reddys at 16.1%.
- ✓Price is above both the 50-DMA (₹1,071.5) and 200-DMA (₹982.3), reflecting a broad-based multi-timeframe price recovery over the past year.
- ✓Forward PE of 51.3 represents a meaningful compression from the trailing PE of 79.0, implying analyst consensus anticipates a step-up in near-term earnings.
- ✗Debt-to-equity of 46.4, combined with a rising debt trend and FCF positive in only 2 of tracked years, represents a structural leverage concern that warrants monitoring against future capex commitments.
- ✗RSI of 73.3 places the stock in overbought territory; a 102.5% 12-month price gain and 28.0% 3-month gain leave limited cushion if earnings delivery disappoints relative to the embedded valuation.
- ✗Trailing PE of 79.0 is the highest among reported peers (Cipla 23.9, Dr. Reddys 19.0, Sun Pharma 40.2), meaning any earnings miss or guidance reduction would compress multiples more sharply here than at lower-valued peers.
- ✗Quality score of 40 (ranked 4th of 6 peers) and consistency score of 9 reflect a history of uneven earnings; ROE has exceeded 15% in only 2 of the tracked years.
- ·FY 2026 results reported strong growth with margin expansion and increased capex — described in coverage as a positive operational inflection — though increased capex also implies further near-term debt or cash consumption.
- ·Laurus Labs declared a 2nd interim dividend for FY 2025-26, with the ex-date falling on 8 May 2026, representing the companys ongoing dividend activity (yield 0.2%).
- ·Motilal Oswal issued a note on 4 May 2026 citing a price target of ₹1,370, representing one named-broker datapoint in a 14-analyst consensus with a mean rating of 2.86 on a 1–5 scale (lower = more constructive).
- ?Does the elevated debt-to-equity of 46.4 reflect pharma-typical working-capital financing or a structural shift in the balance sheet that capex expansion will extend further?
- ?Has the 19.4% 5-year earnings CAGR been driven by a durable therapeutic or geographic mix shift, or does it reflect a recovery from a cyclically depressed base that may not repeat?
- ?At a trailing PE of 79.0 — the highest among reported peers — what level of earnings growth over the next 2-3 years is already priced in, and what happens to the multiple if forward guidance is revised downward?
- ?With RSI at 73.3 and the stock within 0.5% of its 52-week high, what are the nearest historical support zones (₹1,079, ₹996, ₹935) and how do they relate to the companys fundamental valuation floor?
PE
79.0
Forward PE
51.3
ROE
+17.7%
Profit margin
+12.9%
D/E
46.37
Dividend yield
+0.2%
Quality score
40/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
2/5 yrs
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.Analysis generated 11 May 2026.