Laurus Labs: Momentum Meets GrowthLaurus Labs Ltd.NSE_DLY:LAURUSLABSALICEBLUELaurus Labs Ltd. is showing a strong combination of improving fundamentals and bullish price structure. The stock is trading around ₹1,887 in the chart shared, with a decisive move toward the ₹1,895 breakout level. A sustained close above this level could strengthen the bullish setup. Fundamental Strength Laurus Labs operates across API, formulations, CDMO and biotechnology, with CDMO becoming an increasingly important growth driver. FY26 was a strong turnaround year, with revenue rising 23% and profitability expanding sharply. Key Financial Ratios P/E: ~89–92x P/B: ~17–18x ROE: ~18% ROCE: ~18–19% Debt-to-Equity: ~0.45x Net Debt/EBITDA: ~1.18x Current Ratio: ~1.33x Dividend Yield: ~0.1% The ROE and ROCE recovery is a major positive, while debt-to-equity has improved significantly from previous years. However, the current valuation is demanding and leaves limited room for earnings disappointments. Financial Performance FY26 showed a significant improvement: Revenue: ₹6,813 Cr — +23% YoY EBITDA: ₹1,826 Cr — +64% YoY EBITDA Margin: 26.8% PAT: ₹889 Cr — +148% YoY Operating Cash Flow: ₹1,624 Cr Net Worth: ₹5,300 Cr The improvement was driven by better business mix, CDMO growth, operating leverage and stronger utilisation of manufacturing assets. Q1 FY27 Momentum The latest quarter continued the positive trend: Revenue: ₹2,026 Cr EBITDA: ₹644 Cr EBITDA Margin: 31.8% This indicates that the margin expansion seen during FY26 has continued into FY27. Balance Sheet & Financial Stability Laurus Labs' balance sheet has strengthened considerably. Net worth increased to ₹5,300 Cr from ₹4,473 Cr. Debt-equity improved to 0.45x from 0.60x. ROCE improved to 17.7% from 9.7%. ROE improved to 17% from 8%. Operating cash flow of ₹1,624 Cr provides strong internal funding capacity. The company is also investing heavily in capacity expansion, with FY26 capex of ₹1,070 Cr, supporting future CDMO, peptide, fermentation and other high-value opportunities. Technical Outlook The chart shows a strong uptrend followed by a short consolidation. The latest candle is attempting to break above the ₹1,895 level. Key Levels 📌 Current Price: ₹1,887 📌 Breakout Confirmation: Close above ₹1,895 📌 Resistance R1: ₹1,960 📌 Resistance R2: ₹2,015 📌 Resistance R3: ₹2,110 📌 Reversal Zone: ₹1,790–₹1,811 A sustained close above ₹1,895 could strengthen the breakout and bring ₹1,960 → ₹2,015 → ₹2,110 into focus. The ₹1,790–₹1,811 reversal zone is the key support area to watch if the stock experiences a pullback. Techno-Fundamental View Bullish factors: Strong FY26 revenue and PAT growth Significant EBITDA margin expansion CDMO business growing rapidly ROE and ROCE recovery Improving debt-equity ratio Strong operating cash flow Continued investment in high-value pharmaceutical capabilities Positive Q1 FY27 momentum Key concern: Valuation is very demanding, with P/E around 90x and P/B around 18x at recent prices. Fundamental Rating — Out of 5 Business Strength: 4.5/5 Financial Stability: 4.3/5 Profitability: 4.5/5 Growth Potential: 4.7/5 Valuation: 2.5/5 Overall Fundamental Rating: 4.1/5 Final View Laurus Labs presents a strong techno-fundamental setup, backed by accelerating earnings, improving returns, stronger cash generation and a rapidly expanding CDMO franchise. From the technical perspective, ₹1,895 is the key breakout trigger. A sustained close above it could open the path toward ₹1,960, ₹2,015 and ₹2,110. ₹1,790–₹1,811 remains the crucial reversal/support zone. Overall View: Bullish above ₹1,895, but valuation remains the key risk. ANISHFNK21 Follow Disclaimer The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms Disclaimer: https://aliceblueonline.com/legal-documentation/disclaimer