The shares of this mid-cap pharmaceutical company engaged in developing and manufacturing Active Pharmaceutical Ingredients (APIs) and Intermediates jumped 3 percent on Friday after the announcement of its Q3 results with a 259 percent rise in net profits year on year.
Price Action
With a market capitalization of Rs 32,969.59 crore, Laurus Labs Ltd rose 4.7 percent in Friday’s trading session and made a high of Rs 612.65 per share compared to its previous closing price of Rs 585.15 per share. The stock reiterated from its day’s high and closed at Rs 611.50 which is 4.5 percent higher than the previous closing price.
What Happened
Laurus Labs Ltd stock surged after the company reported its Q3FY24-25 results. Its revenue from operations grew by 18.4 percent year on year from Rs 1,194.92 crore to Rs 1,415.05 crore in Q3FY25 and it grew by 15.6 percent QoQ from Rs 1,223.70 crore in Q2FY25.
This was accompanied by a 259.9 percent year-on-year growth in net profits from Rs 25.17 crore to Rs 90.61 in Q3FY24. On a quarter-on-quarter basis, the net profit rose by 411.3 percent from Rs 17.72 crores.
Segment Revenue
In Q3 FY25, the CDMO division contributed around 28.2 percent, API division contributed 37.5 percent, FDF division contributed 30.8 percent and the remaining 3.39 percent was from the BIO division as a percentage of the total revenue.
Capex Plans & R&D Investments
The company plans to drive growth, with a capital expenditure of Rs 2,000 crores. Laurus Labs has five State-of-the-art R&D labs in India. Investments in R&D increased by 25 percent year-on-year, now accounting for 5.4 percent of sales for H1FY25. Its R&D pipeline includes 62 products, targeting markets with substantial growth potential. Additionally, the company successfully completed 76 quality audits without any critical findings.
Company Overview
Laurus Labs is a research-focused pharmaceutical and biotechnology company, with a global leadership role in certain Active Pharmaceutical Ingredients (APIs). They currently operate 12 manufacturing sites and planned investments in higher-value business segments.
Written by Shwetha Sairam
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