Laurus Labs Shares: SEBI RAs Divided On Outlook; Technicals Bullish, Fundamentals Worrying
Synopsis
The stock is trading near its 52-week high, above key technical levels. But revenue and profit have sharply declined, keeping some analysts on guard.
Laurus Labs shares surged nearly 7% on Monday, hovering near its 52-week high.
In recent news triggers, the government of Andhra Pradesh allotted 531.77 acres of land in IP Rambilli Phase-II, Anakapalli district. The pharma company plans to set up Laurus Pharma Zone (LPZ), a manufacturing center, in this space.
SEBI-registered analyst Sameer Pande noted that on a daily timeframe, the stock is indicating a strong upside movement, supported by strong volumes and Relative Strength Index (RSI)around 88. Other technical indicators such as MACD, VWAP and others also suggest a strong positive movement.
On the monthly timeframe, Laurus Labs stock is showing a strong breakout pattern, trading above 100 and 200 day Exponential Moving Average (EMA), indicating a sustained uptrend.
Pande identified strong support around ₹850-₹830 levels,
Last week, Laurus Labs reported their earnings performance for the June quarter.
SEBI-registered Financial Independence rated it as a “ weak quarter” with sharp declines in both revenue and profit. They added that demand pressures from its Anti-Retroviral (ARV) division continue, though the Contract Development and Manufacturing Organization (CDMO) pipeline offers long-term potential.
Revenues fell 20% to ₹965 crore (YoY), impacted by weak ARV formulations and API business. While profits fell 80% to ₹33.4 crore, led by a lower operating leverage. Margins fell sharply to 15.8% vs 24.3% (YoY).
Financial Independence remains cautious in the near-term on the stock.
Meanwhile, post the earnings report, Goldman Sachs maintains a ‘Sell’ rating with a target price of ₹675, indicating 20% downside.
Data on Stocktwits shows that retail sentiment turned from ‘neutral’ to ‘bullish’ a day ago amid ‘high’ message volumes.
Laurus Labs shares have risen 48% year-to-date (YTD).
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