Lupin Ltd. share price target

Learnings at Goa to enhance remediation measures at other sites as well After almost 4.5 years of regulatory hurdles, LPC received a favorable classification (Voluntary Action Indicated or VAI) for its Goa facility from the USFDA. This is a big relief from a compliance standpoint, given the reasonable contribution in the base business as well as double digit ANDAs pending approval from the Goa site. We expect 21% earnings CAGR over FY21-23E and raise our 12-month forward P/E to 25x (to factor Goa compliance) from 24x earlier and arrive at our TP to INR990/share. While the regulatory clearance removes a key overhang on the Goa...

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...

Lupin (LPC) delivered an in-line 2QFY22 operational performance, led by a healthy double-digit growth in Domestic Formulations (DF) and stable US sales. The company has restructured its US specialty business by taking extensive cost measures. In addition to better sales prospects in DF/US, the cost saving steps will enhance its profitability, going forward. We cut our FY22E/FY23E EPS estimates by 5%/4% to factor in: a) lower API sales, b) slower growth in Europe (EMEA), c) reduced operating leverage, and b) higher raw material costs. We value LPC at 24x 12M forward earnings...

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Tax rate guided at 27-28% from 30% in FY22E. We see a near term challenging period for Lupin (LPC) and downgrade our recommendation to REDUCE' from Accumulate' due to delay in resolution of two key plants (Goa and Indore unit-2) as more than 50% of pending ANDAs...

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 recommend a BUY on the stock with a target price of Rs 1,400/share.

We recommend a BUY' with TP of INR 1,400/share, implying an upside of 15.7% from CMP.

Q4FY21 operational performance was in-line with I-direct estimates whereas profitability was above expectations due to higher other income and a lower tax outgo. As per the management, FY22 US sales would be largely driven by gProAir ramp-up and new launches such as Brovana. Domestic branded formulations are expected to grow in double digits in FY22. The resolution of warning letter and clearance of official action indicated (OAIs) status on plants could be the near term lever along with progress on margins front. However, like other pharma majors, Lupin has also chalked out a product,...