Laurus Labs Ltd.
ISIN: INE947Q01028 • Market Cap: ₹97,634 Cr
The 5-Pillar Quality Audit for Laurus Labs Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (28.0%), Return on Capital Employed (19.7%), and equity compounding (16.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.45 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (13.0%) and 3Y PAT CAGR (90.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 89.30 vs PEG of 4.60 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 27.5%, backed by 41.7% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 90.5%)
Net earnings have compounded at 90.5% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (41.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 41.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 89.30)
A steep valuation multiple of 89.30 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking LAURUSLABS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare LAURUSLABS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Laurus Labs Ltd. (LAURUSLABS)Current | 70/100 | ₹97,634 Cr | 89.30 | 19.7% | 0.45 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Laurus Labs Ltd.
Q:What is the 5-Pillar Fundamental Score for Laurus Labs Ltd. (LAURUSLABS)?
Laurus Labs Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (81/100), Financial Health (78/100), Growth (85/100), Valuation (25/100), and Ownership Quality (68/100).
Q:Is LAURUSLABS fundamentally strong for long-term investment?
Yes, LAURUSLABS exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 16.8% and a debt-to-equity ratio of 0.45.
Q:Does LAURUSLABS pass the Coffee Can Investing filter?
Yes! LAURUSLABS satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does LAURUSLABS compare against other Healthcare peers?
Within India's Healthcare sector, LAURUSLABS trades at a P/E of 89.30 and generates an ROCE of 19.7%. Compare its 5-Pillar score of 70/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.