Why a handful of expensive stocks are holding up in the correction

Subscribe to enjoy similar stories. Market corrections usually expose valuation excesses. Stocks that are priced for perfection tend to correct sharply as earnings visibility weakens and risk appetite declines.

However, there are always a few companies that hold their ground. Despite trading at high price-to-earnings (P/E) multiples, their stock prices don't fall much even when broader markets turn volatile. 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 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,