Hi All,
After going through the recent performance of Laurus Labs and poor forecasts by the Management, I seem to loose the conviction in this business.
Any pharma business which exports to Developed nations has lumpy business model, with Net profits moving up and down based on pricing pressure and demand movements, but it is disappointing to see that, even management do not understand their business well. Post September 2020, promoters have been selling the stock for various reasons. Promoter holding is also below 30% which looks low to me for the company of this size.
This business was on my watch list for last few quarters but I am re-thinking whether it deserves on the watch list or not. I may track for some more time and then decide.
Disc : No investment due to various concerns. I may be completely wrong in my conclusion but sometimes it is better to stay away from the business when things are not clear.
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