Lupin Ltd. share price target

reported a 7.9% decline in its total sales (including operating income) to Rs.3, 952 crore (lower than our expectation of Rs.4, 167 crore) for 2QFY2018. Operating profit declined by 17% to Rs.853.1 crore (marginally lower than our expectation of Rs.865 crore) and adjusted profit declined by 31.2% to Rs.455.1 crore (above our expectation of Rs.425 crore). Performance...

Tough pricing environment in the US took a toll on performance Lupin is the 4th largest generic pharmaceutical company globally by market capitalization. The company develops and delivers a wide range of branded & generic formulations, biotechnology products and APIs globally. US and India are...

Amongst the largest Pharma companies in domestic market with Net Sales of INR 171.2bn with a strong brand portfolio. R&D; cost is in excess of 13% of Sales. Sales Mix: API - 7%, Domestic Formulations - 25%, DM Formulations - 62%, EM Formulations - 6%. Historically strong in anti-TB segment, has built expertise in fermentation based products and segments like Cephalosporins, Prils and Statins. Lupin is developing complex products in areas such as Opthalmology, Respiratory,...

Lupins Q1 PAT declined 58% YoY to Rs 3.58 bn (~28% below our estimate) due to pricing pressure in US, GST impact in India and appreciation of Rs/ USD. US sales declined 14% QoQ to USD 238 mn on increased pricing pressure in key products (like gGlumetza).

Pharma Major Lupin Limited reported its financial performance for the first quarter ending June 30th, 2017, missed estimates Key Financial & Performance Highlights Net Sales for the quarter were Rs. 3806.80 crore compared to Rs. 4116.90 crore in Q4 FY2017 and Rs. 4341.80 crore in Q1 FY2017; Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter was Rs. 800.30 crore compared to Rs. 826.70 crore in Q4 FY2017 and Rs. 1393.40 crore in Q1 FY2017; Net profits for the quarter were Rs. 358.10 crore compared to Rs. 380.20 crore in Q4 FY2017 and Rs. 882.00 crore in Q1 FY2017;Investment in...

Lupin, for 1QFY2018, posted poor set of numbers. Sales came in at `3,806cr (`4,316cr expected) v/s. `4,316cr in 1QFY2017, a yoy de-growth of 11.8%. On operating front, the EBITDA margins came in at 18.5% (22.9% expected) v/s. 27.4% in 1QFY2017, mainly on the back of lower than expected sales during the quarter and dip in the gross margins..

Lupin's Q1FY18 results were disappointing, total revenues were down by 7.6% compared to our estimates at Rs38bn down 12.3% YoY while Adj. PAT was down by 59.5% at Rs3.66bn against our estimates of Rs4.8bn which was due to more-thanexpected pricing pressure in US. EBITDA margins were at 18.5% lower than our estimates of 20.5% however, management has further reduced their guidance to 21.-23% from earlier 26-28% for the FY18/19E on the back of pricing pressure in US. We feel it should range between 18-20% as for H1FY18 they have gMinestrin advantage. We have revised down our TP to Rs881 (earlier Rs1,272) and rating to REDUCE on...

Lupin posted revenues of Rs 38.7bn with decline of 12.8% YoY growth which was below our estimate of Rs 42.58bn (~9.1% below est.). EBITDA margin, at 19.9%, was below our estimate of 23.5%, mainly due to 3.2 % decline in gross margin (GST impacted 2.5% of gross margin). R&D; expense stood at...

Maintain BUY rating with a revised TP of Rs. 1,650 (22x Jun19E). Post a disappointing 1QFY18, Lupins (LPC) management has guided for a flat-to-low single-digit decline in the top-line in FY18, and revised EBITDA margin guidance down to 21-23% from 24-26%. However, they are also confident that the worst is now behind them, with the US business likely to resume a sequential upward trajectory from 2HFY18. With 30-35 launches planned in the US market in the next 12-18 months, higher visibility on FTF launches, and a clear regulatory slate, we believe that any further correction in the stock will provide a good opportunity for investors to accumulate the stock.

ICICI Securities Ltd | Retail Equity Research Revenues declined 13% YoY to | 3870 crore (I-direct estimate: | 3933 crore) due to acute price erosion in the US and GST impact in domestic formulations. US business declined 27% YoY to | 1602 crore (I-direct estimate: | 1652 crore). India sales declined 2% to | 932 crore (I-direct estimate: | 792 crore) while Japan grew 17% to...