Akash Bhanshali added this new stock to his portfolio

Akash Bhanshali, one of the most prominent individual stock market investors in the country behind Radhakishan Damani and late Rakesh Jhunjhunwala, with holdings worth around $400 million, has added a new stock to his portfolio.

Bhanshali, who is associated with the Enam group, added Laurus Labs to his portfolio last quarter as per shareholding disclosures. He picked up a 1.1% stake in the drugmaker. This stake is currently valued at Rs 233 crore.

Laurus Labs went public around six years ago but had a disappointing run till mid-2020. However, it has seen its share price flare thereafter. Within a year its share price rose seven-fold to hit a peak.

The share price has moderated since then and has slid even after Bhanshali added it to his portfolio last quarter. The stock closed at Rs 378 apiece on Tuesday.

The drugmaker had previously attracted private equity firm Warburg Pincus to its cap table. The PE firm exited Laurus Labs in mid-2020 after selling some stake in the IPO.

The drugmaker, which was founded by Satyanarayana Chava, set up its first dedicated research and development centre in Hyderabad in 2006. It initially focused on research in oncology, anti-retroviral and active pharmaceutical ingredients (API) areas. It commissioned its first API manufacturing facility in 2007.

The company now also has a growing synthesis and nutraceutical/cosmeceutical ingredients businesses, and an integrated generics finished dosage forms business.

The company’s topline took flight in FY21 in the middle of the pandemic with revenues rising to Rs 4,813 crore from Rs 2,831 crore in FY20. The revenue growth, however, slowed with topline coming at Rs 4,935 crore in FY22.

Laurus Labs' net profit has shot up over the last few years but in spurts. It declined from Rs 167 crore in FY18 to Rs 90 crore the year after, only to rocket to Rs 244 crore in FY20. This shot up again to Rs 984 crore in FY21 before declining to Rs 833 crore last year.

The company is poised to see its business growth at a fast clip this year again as revenues in the first six months have crossed Rs 3,000 crore but margins are under pressure with net profit under Rs 500 crore in the same period. It could end up with 25% revenue growth in FY23 but with almost flat net profit.