Thread by @WealthEnrich

👉🏿Why I believe this #multibagger #Lauruslabs can be a 4 digit stock from here on

➡️Short //Thread\\

In Q4 FY21:

✅Formulations revenue grew 60.9% YoY to Rs. 430 crore
✅CRAMS business grew 19.0% YoY to Rs. 176 crore.
✅EBITDA margins improved 1059 bps to 33.4%

(cont..)

https://twitter.com/WealthEnrich/status/1371195577808031747

~ #Laurus has planned a capex of Rs. 2400 Cr in next 36 months through internal accruals.
~As per mgm guidance it will have a sales of over 7000 cr in FY23.
~With healthy margins & RoCE of 35%+ we can assume Profits upwards of Rs. 1450 Cr which gives a FY23 EPS >Rs. 27

(cont)

Moderating its Growth from 40%+ in the past to a more reasonable 30% in FY24 will take its sales over Rs. 9000+ Cr.
With healthy FCF & 35%+ RoCE (1.3/1.4 times of asset turn x 28%+ EBIDTA) it will generate profits in upwards of Rs. 1950 cr. giving it an FY24 EPS of Rs.36+

(cont)

At Forward (non re-rated) P/E of 20, #Laurus will be Rs. 720+ in 2 yrs (60% returns)

Now if we consider 'Valuation Re-Rating' like what #Divis #Sequent #AartiDrugs had in the past (Fwd PE jumping from 20 to 45+ in last 3 yrs) then

➡️#LAURUSLabs Could EASILY be a 4 DIGIT STOCK.