Laurus Labs

Laurus Labs reported a consecutive beat with best-ever topline of Rs. 839 cr up by 15% Q-o-Q with an EBITDA of Rs. 191 cr and an EBITDA margin of 22.9%. PAT came in at Rs. 110 cr up by 50% from Rs. 73 cr reported in Q3 FY20. Laurus Labs also declared a final dividend of Rs. 1 / share apart from the interim dividend of Rs. 1.5 / share declared in March 2020. With a consistent robust performance over the past few quarters and an increase in EBITDA share from high margin businesses (synthesis and formulations) laurus labs has embarked upon a good growth trajectory. We expect formulation segment to further aid EBITDA margins led by higher capacities. Laurus labs has also filed for 26 ANDA's with 6 final approvals and 5 tentative approvals in place. Given the current valuations we assign an Accumulate rating to the stock and opine to buy on dips.