India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>Laurus Labs is shifting from ARV APIs to high-growth areas like CDMO and biotech, diversifying its revenue base for long-term stability.</li>
<li>Heavy investments in complex, high-margin businesses reduce dependence on volatile ARV markets, ensuring sustainable and more profitable future growth.</li>
<li>Though returns dipped initially, strong CDMO performance shows the strategy is working, making Laurus Labs a model of successful pharma transformation.</li>
</ul>


Laurus Labs is shifting from ARV APIs to high-growth areas like CDMO and biotech, diversifying its revenue base for long-term stability.
Heavy investments in complex, high-margin businesses reduce dependence on volatile ARV markets, ensuring sustainable and more profitable future growth.
Though returns dipped initially, strong CDMO performance shows the strategy is working, making Laurus Labs a model of successful pharma transformation.


Business Breakdown: Laurus Labs- Breaking ARV Dependence with High-Margin Businesses?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/laurus-labs" target="_blank" data-smartkarma-citation="entities:23686:1" rel="noopener">Laurus Labs (LAURUS IN)</a> achieved a 122% YoY increase in PAT for FY25, driven by strong CDMO execution and higher margins.</li>
<li>The company is accelerating its transformation from an ARV-heavy model to a diversified CDMO/CMO business, with growing client base and strong pipeline visibility.</li>
<li>Laurus’ focus on small molecule and bio-CDMO segments, supported by strategic investments in new capacities, positions the company for continued growth, with improved asset turnover and higher operating leverage.</li>
</ul>



Laurus Labs (LAURUS IN) achieved a 122% YoY increase in PAT for FY25, driven by strong CDMO execution and higher margins.
The company is accelerating its transformation from an ARV-heavy model to a diversified CDMO/CMO business, with growing client base and strong pipeline visibility.
Laurus’ focus on small molecule and bio-CDMO segments, supported by strategic investments in new capacities, positions the company for continued growth, with improved asset turnover and higher operating leverage.


Laurus Labs Q4 FY25 Update: Diversification and Strategic R&D Drive Growth

<ul>
<li>The company is expected to see multiple capacity expansions coming online in FY26, with ramp-up occurring throughout FY26 and FY27 onwards.</li>
<li>Currently, execution challenges and unavoidable delays have impacted the company’s revenue and margin trajectory, resulting in depressed margins on a short-term basis.</li>
<li>As new projects come online and product ramp-ups occur, it expects revenue and margin expansion, ultimately reflecting in the bottom line due to the increased gross block &amp; new products.</li>
</ul>


The company is expected to see multiple capacity expansions coming online in FY26, with ramp-up occurring throughout FY26 and FY27 onwards.
Currently, execution challenges and unavoidable delays have impacted the company’s revenue and margin trajectory, resulting in depressed margins on a short-term basis.
As new projects come online and product ramp-ups occur, it expects revenue and margin expansion, ultimately reflecting in the bottom line due to the increased gross block &amp; new products.


Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Anthem Biosciences / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anthem-biosciences" target="_blank" data-smartkarma-citation="entities:44206:1" rel="noopener">Anthem Biosciences (1234D IN)</a>, a Contract Research, Development, and Manufacturing Organization, has filed DRHP for INR34B IPO. The proposed IPO will be only offer for sale, with no fresh issue.</li>
<li>Anthem Biosciences is one of three CRDMOs that possess technological capabilities in India across ADCs, RNAi, peptides, and oligonucleotides, which are among the fastest growing in the pharmaceutical industry.</li>
<li>Differentiated technological capabilities, large clientele, and exposure to commercialized molecules enhance our conviction on the sustainable growth prospect of the company. Industry backdrop is also favorable.</li>
</ul>



Anthem Biosciences (1234D IN), a Contract Research, Development, and Manufacturing Organization, has filed DRHP for INR34B IPO. The proposed IPO will be only offer for sale, with no fresh issue.
Anthem Biosciences is one of three CRDMOs that possess technological capabilities in India across ADCs, RNAi, peptides, and oligonucleotides, which are among the fastest growing in the pharmaceutical industry.
Differentiated technological capabilities, large clientele, and exposure to commercialized molecules enhance our conviction on the sustainable growth prospect of the company. Industry backdrop is also favorable.


Anthem Biosciences Pre-IPO: High Visibility Powered by Differentiated Capabilities

Thematic (Sector/Industry)

<ul>
<li>Hansoh Pharmaceutical entered outlicense agreement with Roche for upfront and milestone payments of $2B+. Leads Biolabs and Dianthus Therapeutics entered into exclusive global license agreement for pre-clinical asset.</li>
<li>Chugai Pharmaceutical’s partner Eli Lilly announced positive results from Phase 3 trials of orforglipron. SanBio Co announced that their partial change application for AKUUGO is one step ahead for approval.</li>
<li>Celltrion launched Actemra biosimilar, Aptozma in the U.S. at ~35% discount to original drug. Samsung Biologics shareholders approved biologics business spin-off plan to transform the company into a pure-play CDMO.</li>
</ul>


Hansoh Pharmaceutical entered outlicense agreement with Roche for upfront and milestone payments of $2B+. Leads Biolabs and Dianthus Therapeutics entered into exclusive global license agreement for pre-clinical asset.
Chugai Pharmaceutical’s partner Eli Lilly announced positive results from Phase 3 trials of orforglipron. SanBio Co announced that their partial change application for AKUUGO is one step ahead for approval.
Celltrion launched Actemra biosimilar, Aptozma in the U.S. at ~35% discount to original drug. Samsung Biologics shareholders approved biologics business spin-off plan to transform the company into a pure-play CDMO.


APAC Healthcare Weekly (October 19) – Hansoh, Leads Biolabs, Chugai, SanBio, Celltrion, Samsung Bio

India

Laurus Labs Limited researches, develops, manufactures, and sells active pharmaceutical ingredients (APIs) in India and internationally. It offers APIs for anti-retroviral and hepatitis C; and APIs in oncology and other therapeutic areas. .

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Laurus Labs (LAURUS IN)

Business Breakdown: Laurus Labs- Breaking ARV Dependence with High-Margin Businesses?

Laurus Labs shifts focus from ARV APIs to high-growth CDMO and biotech sectors for long-term stability and profitability in the pharma industry.

Sudarshan Bhandari

Laurus Labs Q4 FY25 Update: Diversification and Strategic R&D Drive Growth

Laurus Labs sees 122% YoY increase in PAT for FY25, driven by CDMO success and margin growth, transforming into diversified CDMO/CMO business with...

Sudarshan Bhandari

The Beat Ideas: Laurus Labs

Company faces short-term challenges with revenue and margins due to delays, but expects expansion and improved bottom line in FY26 and beyond with...

Sudarshan Bhandari

Anthem Biosciences Pre-IPO: High Visibility Powered by Differentiated Capabilities

Anthem Biosciences, a Contract Research, Development, and Manufacturing Organization, has filed DRHP for an Indian IPO. The proposed IPO will be...

Tina Banerjee

APAC Healthcare Weekly (October 19) – Hansoh, Leads Biolabs, Chugai, SanBio, Celltrion, Samsung Bio

Hansoh and Leads Biolabs bag global outlicensing deals. Chugai’s partner Lilly announced positive P3 result for orforglipron. Celltrion launched...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Business Breakdown: Laurus Labs- Breaking ARV Dependence with High-Margin Businesses?

​Laurus Labs shifts focus from ARV APIs to high-growth CDMO and biotech sectors for long-term stability and profitability in the pharma industry.

Sudarshan Bhandari

Laurus Labs Q4 FY25 Update: Diversification and Strategic R&D Drive Growth

​Laurus Labs sees 122% YoY increase in PAT for FY25, driven by CDMO success and margin growth, transforming into diversified CDMO/CMO business with...

Sudarshan Bhandari

The Beat Ideas: Laurus Labs

​Company faces short-term challenges with revenue and margins due to delays, but expects expansion and improved bottom line in FY26 and beyond with...

Sudarshan Bhandari

Anthem Biosciences Pre-IPO: High Visibility Powered by Differentiated Capabilities

Anthem Biosciences, a Contract Research, Development, and Manufacturing Organization, has filed DRHP for an Indian IPO. The proposed IPO will be...

Tina Banerjee

APAC Healthcare Weekly (October 19) – Hansoh, Leads Biolabs, Chugai, SanBio, Celltrion, Samsung Bio

Hansoh and Leads Biolabs bag global outlicensing deals. Chugai’s partner Lilly announced positive P3 result for orforglipron. Celltrion launched...

Tina Banerjee

Laurus Labs shifts focus from ARV APIs to high-growth CDMO and biotech sectors for long-term stability and profitability in the pharma industry.

Laurus Labs sees 122% YoY increase in PAT for FY25, driven by CDMO success and margin growth, transforming into diversified CDMO/CMO business with...

Company faces short-term challenges with revenue and margins due to delays, but expects expansion and improved bottom line in FY26 and beyond with...