Laurus Labs Stock Jumps 42% YoY, Hits Rs. 535.6 High on Bullish Trends

Laurus Labs, a big name in the large-cap pharmaceutical sector, continues its upward trajectory. Yesterday, the stock rose by 3.68% to Rs. 531.7, outperforming the sector’s 0.8% gain and is currently trading at Rs. 533.25. It also touched a new 52-week high of Rs. 535.6 during the session, marking its fourth consecutive day of gains, with an 8% cumulative rally in the period. Over the past year, Laurus Labs’ stock has gained over 42%, moving from Rs. 373.7 to Rs. 531.7.

Technical Insights

The stock’s current price trends are above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, showcasing a bullish outlook. It recently broke out of a symmetrical triangle pattern on short-term charts and formed a W pattern with a double bottom at Rs. 445. Analysts, according to the reports, suggest accumulating the stock between Rs. 505 – Rs. 510 for a potential upside to Rs. 565 – Rs. 570, with a stop-loss below Rs. 470.

Industry Context

Laurus Labs outperformed the benchmark indices, with a 3.7% 1-day gain and a 14.28% rise over the past month. In contrast, the BSE Sensex climbed 1.2% to 80,063.7 on Monday, while the NSE Nifty gained 1.3% to reach 24,227. The BSE Healthcare index rose 0.8% to 43,308.2, with notable gains in Poly Medicure (up 16%) and Eris Lifesciences (up 5.5%).

Financial Challenges Persist

Despite strong stock performance, Laurus Labs faced setbacks in its financial results. Net profit for Q2 FY25 dropped 54.9% YoY to Rs. 17.7 crore, while revenue marginally declined to Rs. 1,223.7 crore. For FY24, net profit plunged 78.9% to Rs. 168.2 crore, and revenue fell 16.6% to Rs. 5,040.8 crore. However, the management maintains a positive EBITDA margin guidance of 20% for FY25.

While Laurus Labs has a decent stock performance, aided by technical breakouts and investor confidence, its financial results bring out ongoing challenges. For investors, the stock’s recent momentum and management’s guidance make it a watch-worthy candidate in the pharmaceutical sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.