This contrast often creates confusion. On the surface, elevated valuations should make these stocks vulnerable. But markets don’t look at valuation in isolation, especially during corrections. Instead, they tend to differentiate between stocks where confidence breaks quickly and those where conviction remains intact.
This is why some high P/E stocks stay resilient when the market corrects. We look at three stocks that continue to trade at elevated valuations despite weak market breadth, yet have held their ground through the correction.
Laurus Labs and the long CDMO payoff
Laurus Labs Ltd is a research-driven pharmaceutical and biotechnology company. Laurus operates through a diverse portfolio that includes Generics (API and FDF), Contract Development and Manufacturing Organization (CDMO) services. It holds leadership positions in APIs and Finished Dosage Forms across therapeutic areas, including antiretrovirals, oncology, and cardiovascular.
In H1 FY26, total income from operations increased 33% year-on-year to ₹3,223 crore. The company reported Ebitda of ₹818 crore, with margins expanding to 25.4% due to improved operating leverage and improved product mix. Net profit also grew by almost 10 times to ₹356 crore, albeit from a low base of ₹33 crore in H1 FY25.
Strong financial momentum and various earnings triggers have kept its share price elevated, even though it trades at a rich multiple. Its share price is currently trading at ₹1,030, up 76% from last year. Valuations are at a price-to-earnings multiple of 81 times, a premium to the industry median and competitors like Divi’s Laboratories Ltd (65) and Sai Life Sciences Ltd (61).
It is pursuing an aggressive expansion strategy focused on capacity additions and new technology approaches. Laurus proposes investing about $600 million over eight years to build a world-class pharmaceutical manufacturing complex. Laurus continues to invest in growth, with an estimated capex of about ₹1,000 crore in FY26.
The company is also investing about ₹250 crore (opex and capex combined) over the next three years, specifically in fast-growing Cell and Gene Therapy and related capabilities. It is constructing dedicated capacities to meet growing demand, particularly for complex small molecules. The CDMO division is transitioning from early-phase to commercial deliveries, which requires significant upfront capex and validation time (18-24 months).
The company expects improved growth for the rest of the year. Management is optimistic that Ebitda margins will continue to improve over the next 12 to 24 months as operating leverage kicks in and the product mix shifts further towards high-margin CDMO and complex commercial assets.
A key operational objective is to improve the fixed asset turnover ratio from the current 0.9x to 1.1x over the next two years. This would mark a return to historical levels, driven by better utilization of the existing asset base.
Laurus is also expanding into animal health with facilities currently undergoing multiple product validations. A commercial asset is already being supplied and is expected to generate a strong revenue contribution in FY27 upon validation. Another segment, Crop Science, is also in the qualification phase.
Laurus is positioning itself for the future by building capabilities in cutting-edge therapies, though significant revenue is not expected for another 3 to 5 years. A new Gene/ADC facility is under construction in Hyderabad and is expected to be completed by the end of 2026. This facility will handle plasmids, viral vectors, and bio-conjugation.
Jain Resource Recycling and the formalization tailwind
Jain Resource Recycling Ltd operates as a vertically integrated non-ferrous metal recycling business, processing scrap materials procured both domestically and internationally. Its core business is manufacturing non-ferrous metal products (lead, copper, and aluminium) from recycled scrap. It boasts 8.6% market share in lead, 3.4% in copper, and 0.5% in aluminuim.
The company’s business aligns with the rising demand for recycling. The management anticipates that formalizing the recycling sector will increase opportunities for organized players like Jain. The mandated minimum recycled content in new products (5% each for copper and aluminium from 2028) is expected to shift market share from unorganized to organized sectors.
Jain Resource serves a diverse client base of over 250 customers spanning more than 20 countries. JRR exhibits strong customer stickiness, as evidenced by a high contribution from existing clients. In H1 FY26, repeat customers accounted for nearly 88% of its revenue, providing sticky revenue visibility.
The Lead and Lead Alloy Ingots segment, in which it is a market leader in India, accounts for about 48% of the company’s total revenue. This is followed by copper and copper ingots (46%) and aluminium and aluminium alloys (4%). In H1 FY26, 63% of the company’s revenue came from exports, with the remaining 37% from the domestic market.
This strength is also reflected in its share price. Since listing in October 2025, the company has delivered a 19% return at the current price of ₹381. This is despite a valuation premium of 52 times, the highest in the sector, with Pondy Oxides (42) and Gravita (29) commanding much lower valuations.
Financial momentum also supports this valuation. Revenue grew 27% year-over-year to ₹3,663 crore in H1 FY26, driven by increased volumes. Ebitda increased 37% to ₹250 crore, while margins expanded 52bps to 6.8%. Net profit surged by 38% to ₹155 crore. This growth was led by the lead segment, which witnessed 47% volume expansion.
Management estimates that the historical growth rate of 20-25% will continue for the present product portfolio. And to keep the momentum going, given the sectoral tailwind, Jain is also expanding capacity and diversifying into newer verticals.
JRR maintains a policy of adding 20% additional capacity each year to stay ahead of demand. Currently, lead capacity utilization is nearly 100%, so the company plans to install additional refining furnaces to maintain this growth buffer. In addition, the company expects the copper segment to lead future growth, as it yields the highest Ebitda.
The company is setting up a manufacturing facility to produce copper cathodes, wire rods, and busbars. It expects operations to start in Q1FY27. This move is expected to significantly enhance the bottom line, with management projecting an increase in Ebitda margins of 3-4% within the copper segment alone, driven by value-addition.
Jain has also entered into a joint venture (55% stake) with the US-based C&Y Group to set up a ₹60 crore copper scrap recycling plant. This facility is expected to come online next year, leveraging C&Y’s electric-motor scrap-sourcing capabilities. Beyond the core metals, Jain is also exploring new recycling domains to future-proof its business model over the next 2-3 years.
The company is conducting advanced studies on tyre recycling, solar panel recycling, and e-waste processing, and if these projects are completed, capital expenditure is expected to be ₹100 crore over the next few years.
Syrma’s margin-first reset
Syrma SGS Technology Ltd has steadily built its position as a meaningful player in India’s Electronic System Design and Manufacturing (ESDM) landscape. The company has a diversified offering as a full-stack manufacturing partner, offering integrated box-build solutions and customized end-of-line testing.
Beyond core EMS, the company has carved out niches in the Radio Frequency Identification. It also supplies critical communication solutions to segments such as public safety, oil and gas, medical devices, and paramilitary forces. These are areas where entry barriers are higher, and vendor relationships tend to be long-term.
Against this backdrop, Syrma’s stock performance has held up relatively well compared to peers, even during periods of sector volatility. The company is trading at a price-to-earnings multiple of 56 times, at ₹668 per share. It has delivered a 43% return over the last year. This resilience comes from Syrma’s shift in business model.
In H1 FY26, revenue grew a modest 4.4% year-on-year to ₹2,093 crore, largely on the back of steady order-book execution. The top line number looks unremarkable. But a closer look at profitability tells a different story. Ebitda rose sharply by 60% to ₹227 crore, while margins expanded by 370 basis points to 10.7%. As a result, net profit nearly doubled to ₹116 crore.
This divergence comes from Syrma’s strategic rebalancing of its business mix. Syrma is moving away from lower-margin consumer electronics toward higher-margin industrial and automotive segments. The transition has slowed the near-term revenue momentum, but is yielding margin gains.
The consumer vertical illustrates this shift clearly. Revenue from this segment declined 23% to ₹683 crore, reducing its share of total revenue from 40% to 32%. This drag explains the subdued topline growth. On the other hand, Industrial revenues rose 20% to ₹552 crore, accounting for 26% of total revenue.
Automotive followed closely, growing 24% and contributing another 24%. Healthcare posted a 21% increase, while exports surged 35%, underscoring the company’s growing relevance beyond domestic consumer demand.
Visibility on future growth remains strong. Syrma’s order book stands at around ₹5,800 crore, translating into about 1.5 years of revenue visibility. On the back of this pipeline, management has reiterated its guidance of 30% organic revenue growth for FY26, with FY27 expected to be even stronger.
Syrma is also diversifying into new growth engines. The company is actively diversifying through acquisitions and greenfield investments, particularly in defence, PCB manufacturing, and solar energy. These segments are aligned with long-term domestic manufacturing priorities and offer scope for scale over the next few years.
In defence, following the Elcome acquisition, Syrma plans to consolidate its financials from Q4FY26. The current defence business, which is approximately ₹200 crore, is targeted to grow to ₹300-350 crore in the next 2-3 years. PCB manufacturing is a big opportunity, in which it is investing ₹1,500 crore.
Trial production is expected to start in Q3/Q4FY27, with revenues projected to kick in FY28. The management estimates that the PCB industry typically operates at an asset turnover ratio of 1.2-1.5x. Consequently, the ₹1,500 crore investment is expected to generate peak revenue of about ₹2,500 crore once fully operational.
Initially, the plant will cater to the domestic Indian market to meet immediate localization demand. The company plans to target export markets beyond 2028 once product and process approvals are in place. In solar, the company expects momentum to improve as KSolare expands beyond rooftop installations into grid-connected solutions and microinverters.
Meanwhile, the core industrial and automotive businesses continue to offer steady tailwinds. Rising electronic content in vehicles, alongside the gradual adoption of EVs, should support automotive growth. Industrial demand is being driven by data centres and power electronics, both in India and overseas.
For more such analysis, read Profit Pulse.
Madhvendra has over seven years of experience in equity markets and writes detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments.
The writer does not hold the stocks discussed in this article.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
