Lupin Ltd. share price target

Q3EBITDAgrowth of 44% YoY was 20% above our and consensus estimates, however higher tax rates of 39% (vs. 25% assumed as guided; now guidance revised to 28%) resulted in largely in-line PAT. While strong growth in US (8% QoQ) was led by improved market share of gGlumetza; growth in India (12% YoY) a..

For 3QFY2017 Lupin posted results much better than expected on sales and OPM fronts. In sales, the company posted sales of Rs4,110cr v/s Rs4,000cr expected yoy growth of 31.3%. The strong sales growth was aided by the USA (contributed around 49.0%), which registered a yoy growth of 57.6%. On EBITDA front, the company posted EBITDA of 25.9..

Revenue rose by 4.6% to Rs. 4404.94 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 31.48% when compared with Q3FY16.

Background: Amongst the largest Pharma companies in domestic market with Net Sales of INR 112.9bn with a strong brand portfolio. R&D; cost is in excess of 8% of Sales. Exports account for 73% with Developed Markets (DM) at 58% and EM at 15%. Sales Mix: API - 10%, Domestic Formulations - 25%, DM Formulations - 56%, EM Formulations - 9%. Historically strong in anti-TB segment, has built expertise in fermentation based products and segments like...

Lower than expected R&D costs (12.9% of sales vs. 14% expected) led to a surprise beat in margins (27.1%) in 3QFY17. Boosted by this, earnings grew ~20%YoY to Rs 6.3bn, despite higher taxes during this quarter. Revenue performance continued to be strong and in line with estimates, growing at ~26% to Rs ~45bn. US sales grew ~58% YoY, and notably, ~9% sequentially on a high base.

ICICI Securities Ltd | Retail Equity Research Revenues grew 26% YoY to | 4483 crore (I-direct estimate: | 4351 crore) mainly on account of 58% growth in the US to | 2176 crore (Idirect estimate: | 1988 crore). Strong US sales were due to Gavis consolidation and robust sales in Metformin (anti-diabetic). Domestic sales grew 12% YoY to | 991 crore (I-direct estimate: | 976 crore) EBITDA margins improved 245 bps YoY to 27.1% (I-direct estimate:...

Total revenues were a little ahead of our estimates while PAT were inline with our expectation by 3.1%/(1.9%) respectively for Q3FY17 at Rs44 bn/Rs6.3 bn. EBITDA margin improved to 25.8% from 19.4% in Q3FY17 and 22.5% in Q2FY17 on the back of 1) better sales mix, 2) reduction in R&D; expenses, and 3) overall tightening of costs. Management guided a 26-28% EBITDA margins. Management has guided for some delays in launches like Renvela/Welchol ect but is confident on continuous launches from India/Somerset with a focus on 25+ launches in 12M to support the base business as the pricing pressure will continue. Also India business to...

Pharma major Lupin, misses' market expectations despite of 58% growth in profit Net Sales for the quarter grew by 31.9% to Rs. 4211.20 crore, as compared to Rs. 3192.60 crore in Q2 FY2016 Net Sales in Q2 FY2017 decreased by 3.0% sequentially as compared to Rs. 4341.80 crore in Q1 FY2017;H1 FY2017: Net sales grew by 35.8% to Rs. 8553.00 crore as compared to Rs. 6298.60 crore in H1 FY2016 Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter grew by 46.5% to Rs. 1055.20 crore, as compared to Rs. 720.40 crore in Q2 FY2016 and stood at 25.1% of sales; EBITDA in Q2 FY2017 decreased by 24.1% sequentially as compared to Rs. 1390.70...

Lupin posted results lower than expected. Sales came in at Rs4,212cr vs. Rs4,300cr expected, registering a yoy growth of 31.9%, mainly aided by exports. The sales growth was driven by Formulations sales (Rs3,919.3cr), posting a yoy growth of 37.1%; while API sales (Rs291.9cr) posted a yoy de-growth of 12.3%. On the operating front, the EB..