pharma

Laurus Labs

LAURUSLABS · Nifty 50

1,369.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionpharma sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score100/100 (STRONG). 2 positive flags, 3 concerns.
Historical Context27 similar technical setups. Average outcome: -8.4% decline. 0% positive.

Fundamental

100/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Laurus Labs scores 100/100 on fundamentals (strong). Laurus Labs: BROAD EXPANSION regime.

Fundamental Score: 100/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 17.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE17.5%=
13.8%Net Margin
×
0.6xTurnover
×
2.0xLeverage

ROE of 17.5% is moderate margin-driven and stable. Net margin of 13.8% × asset turnover of 0.64x × leverage of 2.0x.

What This Means

Net margin of 13.8% means the company keeps ₹13.8 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.64x means the company efficiently uses its assets to generate revenue. Leverage of 2.0x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

56.3%

Operating

20.6%

Net

13.8%

improving

Gross margin 56.3% → operating margin 20.6% → net margin 13.8%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.8x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 8.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.4x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 8.2% — moderate. Generating cash after investments.

Peer Comparison

Laurus Labs is compared against 10 peers in the pharma sector.

Key Watchpoints

🟢

Breaks above ₹1438 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1301 (-5%)

Further downside risk

🟢

Pharma sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
✅ High Earnings Quality: Cash flow covers earnings 1.8x — strong cash conversion

Risk Flags

🔴 1 Critical⚠️ 2 Warning2 Positive5 total flags
🔴Cash covers only 3% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️71% of debt is short-term
Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Price/Sales: 10.9x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

Assets relatively new (34% depreciated)
Balance Sheet

Modern asset base. Lower near-term capex requirements.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
84.8UNAVAILABLE
P/B Ratio
14.2HIGH
Market Cap
₹7532700.6L CrHIGH
From 52W High
94% of high
Sector Peers
10
Laurus Labs Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight