Laurus Labs Share Price Jumps After Stellar Quarterly Results; Clos to 52-Week Highs
Laurus Labs share price jumped by 4.5 percent on Friday as the company announced better-than-expected quarterly results. The stock is quite close to its 52-week highs and has given a bullish breakout on technical charts. The company reported a significant expansion in its Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) margin, which increased by 500 basis points year-on-year to reach 20.2%—a level last seen in Q4 of FY2023.
Net profit for the quarter saw a remarkable growth, surging to Rs. 92 crore compared to Rs. 23 crore in the same period last year. Additionally, other income rose marginally to Rs. 9.4 crore from Rs. 2.4 crore during the previous year.
The company's revenue increased by 18.5% year-on-year, rising to Rs. 1,415 crore from Rs. 1,194 crore. On a sequential basis, revenue registered a robust 16% growth, reflecting strong business momentum.
Stock Performance: Key Metrics
| Metric | Value |
|---|---|
| Current Price Range | Rs. 577.00 - Rs. 612.65 |
| Market Cap | Rs. 32,430 crore |
| Price-to-Earnings (P/E) Ratio | 251.35 |
| Dividend Yield | 0.13% |
| 52-Week High | Rs. 619.40 |
| 52-Week Low | Rs. 360.85 |
Insight: Laurus Labs has seen a significant recovery from its 52-week low of Rs. 360.85, trading close to its 52-week high of Rs. 619.40. The elevated P/E ratio reflects high investor expectations for future growth.
Technical Analysis: Candlestick Patterns
Bullish Momentum in the Making
On the daily chart, Laurus Labs has formed a Bullish Engulfing Pattern, a technical indicator of growing buying interest. This pattern often suggests a potential trend reversal or continuation of an upward trend, contingent on the stock’s ability to maintain momentum.
Investors should watch for sustained trading above Rs. 612.65, which could signify further bullish traction.
Fibonacci Retracement Levels
Using the 52-week high (Rs. 619.40) and low (Rs. 360.85), the Fibonacci retracement levels are calculated as follows:
| Level | Price |
|---|---|
| 0% (52-week low) | Rs. 360.85 |
| 23.6% | Rs. 429.64 |
| 38.2% | Rs. 474.32 |
| 50% | Rs. 490.13 |
| 61.8% | Rs. 505.94 |
| 100% (52-week high) | Rs. 619.40 |
Key Insight: The stock is currently trading above the 61.8% Fibonacci retracement level (Rs. 505.94), a bullish signal. A breakout above Rs. 619.40 could indicate a strong upward trajectory.
Support and Resistance Levels
Immediate Support: Rs. 577.00
Key Resistance: Rs. 612.65, Rs. 619.40
Trading Strategy:
A breakout above Rs. 612.65 could drive the stock toward new highs, while maintaining Rs. 577.00 as a stop-loss level for short-term traders.
Investors should monitor for consolidation near Rs. 505.94 to assess potential re-entry points.
