4 hours Ago
Axis Securities has an overweight call on Lupin with a target price of Rs 2500. The current market price of Lupin Ltd. is Rs 1959.
Lupin, incorporated in 1983, is a Large Cap company with a market cap of Rs 90156.51 crore, operating in the Pharmaceuticals sector. Lupin's key products/revenue segments include Pharmaceuticals, Other Services, Export Incentives, Other Operating Revenue and Scrap for the year ending 31-Mar-2024.
Financials For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 5821.42 crore, up 1.86% from last quarter Total Income of Rs 5715.
02 crore and up 11.38% from last year same quarter Total Income of Rs 5226.78 crore.
The company has reported net profit after tax of Rs 858.86 crore in latest quarter. The company's top management includes Mrs.
Manju D Gupta, Mr.Jeffrey Kindler, Mr.Jean-Luc Belingard, Dr.
Punita Kumar-Sinha, Mr.Mark D McDade, Mr.Ramesh Swaminathan, Ms.
Vinita Gupta, Mr.Nilesh D Gupta, Mrs.Manju D Gupta, Mr.
Alfonso Zulueta, Mr.Jeffrey Kindler, Mr.Jean-Luc Belingard, Dr.
Punita Kumar-Sinha, Mr.Mark D McDade, Mr.Ramesh Swaminathan, Ms.
Vinita Gupta, Mr.Nilesh D Gupta, Mr.Alfonso Zulueta.
Company has B S R & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 46 crore shares outstanding.
Investment RationaleNew launches in the US market, such as Darunavir and Spiriva, have gained market shares of up to 30% and 25%, respectively. The recent approval for Megabran has the potential to contribute $50 Mn in annual incremental sales. Additionally, approvals for Tolvaptan (market size $287 Mn) and Xyway (market size $958 Mn with 180-day exclusivity) could drive growth in the second half.
The company has a strong product pipeline, including Cynocobalamin, Diazepam Gel, Varenicline, Bromfenac, Glucagen, and Risperidone, among others. Double-digit growth in India's business is expected, supported by an increase in MR count to 1,000. The API business is also witnessing an uptick, benefiting from a broader demand revival in the industry.
Lupin?s margins, currently at 18%, remain below the industry average of 22%, indicating significant potential for improvement in the coming quarters. This margin expansion will be further supported by a favourable macro environment, including declining raw material prices, lower logistics costs, and reduced fuel expenses. At the CMP, the stock trades at 29.
2x and 25x its FY25E and FY26E earnings. Promoter/FII Holdings Promoters held 46.95 per cent stake in the company as of 31-Dec-2024, while FIIs owned 22.
04 per cent, DIIs 24.73 per cent..
