Laurus Labs Q2 Results Review - Inline; CDMO Traction To Pick Up In H2: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Laurus Lab Ltd. delivered largely in-line operational performance for Q2 FY25. It witnessed an improving traction in the contract development manufacturing organisation business, with a 33%/44% YoY/QoQ jump in sales for Q2 FY25. However, this was offset by weak active pharma ingredient segment. The commercialisation of CDMO contracts is expected to pick up in H2 FY25, driving sales as well as operating leverage.We cut our FY25/FY26/FY27 estimates by 6%/8%/5% to factor in:a reduced off-take of ARV formulations;a gradual pick-up in abbreviated new drug application-led FDF business; anda delay in onco-API sales. .Compared to a stable H1 FY25 performance on the revenue/Ebitda front, we expect 13%/68% YoY growth in revenue/Ebitda to Rs 30 billion/Rs 7 billion for H2 FY25. The scale-up in sales from the CDMO segment and strong operating leverage are expected to drive strong performance for H2 FY25. Given the improving demand tailwind and increasing contribution expected from the CDMO segment over the next three-four years, we value Laurus Labs at 35 times 12 months forward earnings to arrive at our target price of Rs 530. Reiterate Buy..Click on the attachment to read the full report:.Piramal Pharma Share Price Jumps Over 8% As Q2 Net Profit Jumps Fivefold.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Laurus Labs Q2 Results Review - Inline; CDMO Traction To Pick Up In H2: Motilal Oswal

Compared to a stable H1 performance on the revenue /Ebitda front, the brokerage expects 13%/68% YoY growth in revenue/Ebitda to Rs 30 billion/Rs 7 billion for H2.

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Laurus Labs Q2 Results Review - Inline; CDMO Traction To Pick Up In H2: Motilal Oswal

Compared to a stable H1 performance on the revenue /Ebitda front, the brokerage expects 13%/68% YoY growth in revenue/Ebitda to Rs 30 billion/Rs 7 billion for H2.

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