Sell call from Kotak Institutional Equities. Didn’t have time to dig into. But, sharing for info and discussion.
The brokerage believes Laurus Labs is confronting troubles with regard to antiretroviral (ARV) pricing as well as looming cessation of Paxlovid sales. Ex-Paxlovid, the company reported ~19% EBITDA margin in 1HFY23. Furtherrnore, even as volumes pick up, Laurus’ ARV realization will stay under pressure, as it bids for winner-takes-all tenders and lower long-term tender prices, added the brokerage. The brokerage’s revised FY2024E EPS is 34% lower than the Street estimates.
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