Anand Rathi maintains Buy rating on Laurus Labs with a target price of Rs 424 per share. Laurus Lab reported consolidated revenues of Rs 12880 mn showcasing strong growth of 76% for the quarter and Rs 34020 mn for 9M FY21 growing by 71% driven by growth in all the divisions.

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Generic FDF business maintains healthy growth momentum of 47% for the quarter (YoY) and 121% for 9M (YoY) led by higher sales from tender business in LMIC and strong order book for the coming quarters. Moreover, 9 products have received Final Approvals, and 8 products have received Tentative Approvals.

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Laurus Labs Revenue from Generic API segment showcased the growth of 103% for the quarter (YoY) and 52% for 9M (YoY). The Anti-Viral segment showed robust growth of 165% for the quarter and 58% for 9M (YoY) and is expected to have good growth for the full year. Filed 282 patent applications and 141 patents granted as on Dec 31, 2020.

Laurus Labs Revenue from synthesis and ingredients showcased the growth of 63% for the quarter (Y-o-Y) and 45% for 9M (Y-o-Y). Total Number of Active Projects in the CDMO division stood at 49 as of 9M FY21.

Laurus Labs Consolidated EBITDA grew 189% y/y to Rs 4,330 mn while margins improved by 120bps to 34% from 32.8% in the previous year quarter owing to better operating leverage and product mix. PAT stood at Rs 2730 mn for the quarter, showcasing a robust growth of 274%.

Laurus Labs continue to maintain a healthy cash position with Rs 600cr of headroom available in the form of unutilized bank limits. Laurus Labs has completed the acquisition of majority stake 72 55% in Richcore Lifesciences which will be renamed to be Laurus Bio valued at Rs 340 Cr and the cost of acquisition of 72 55% stake is ₹246.67 Cr funded through internal accruals.

Laurus Bio/ Richcore is an emerging biotech company as it is fastest Growing Research Driven Bio Manufacturing Company; it has a Precision Fermentation capabilities, scale up expertise and large scale manufacturing capabilities and it also has a Strategic global partnerships for commercialization of products. With continuity of robust growth across segments, Anand Rathi expects the growth momentum to continue in the medium to long term.