Lupin Ltd. share price target

We maintain our HOLD rating on the stock with a revised TP of Rs 670/share.

LPC booked a loss of Rs. 5.2 bn in Q4 with weak operating performance and contraction in margins, EBITDA was ~50% below consensus

Lupin Limited is a multi-national pharmaceutical company based in Mumbai. The company specializes in branded and generic formulations, API's and advanced drug delivery systems in the area of biotechnology. The...

We expect a near-term headwind for Lupin and therefore recommend a HOLD rating with a target price of Rs 950.

Q3 revenue growth modest at 4% YoY (+2% QoQ) despite strong US and India formulation business, as API revenue declined 25%

3QFY22 miss led by business mix and lower operating leverage LPC delivered a lower than expected 3QFY22 financial performance, led by moderate growth in the US and India and higher price erosion and raw material cost. While the management continues its efforts towards building a complex pipeline and working on cost optimization measures, a meaningful benefit is expected from 2HFY23 onwards. We have cut our FY22E/FY23E/FY24E EPS estimate by 12%/26%/23% to reflect: a) lower offtake of seasonal products in the US, b) reduced demand...

About the stock: Lupin is a multinational pharma company engaged in manufacturing & marketing branded & generic formulations, APIs, biotech products as well as OTC medicines across multiple dosage forms & therapeutic categories....