This Indian API Stock looks ripe for accumulating in 2023

This post is part of quarterly earnings discussion series I write. I share my analysis, and future growth prospects of listed companies. This is not a buy/sell recommendation. Please do your own research before investing.

First, some context

Laurus labs posted a lukewarm Q3 FY 23 results on 30th Jan 2023. The markets did not like the results, and the earnings missed estimates. Laurus Labs stock price fell by 9% on the day the results were announced.

Laurus labs has been hailing the ARV drug for HIV as its champion to drive growth for the past 3–4 years. However, this story seems to be over now. Not only is there intense competition, but also price erosion. Laurus Labs has corrected 36% in the past 1 year. From highs of INR 626/-, it is trading at INR 335/- in Feb’23. Its PE has downrated in the last 1 year from 42 to a low of 20. The company’s stock price chart looks like a falling knife, and has left investors bleeding and exiting in disappointment.