Lupin Ltd. share price target

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

IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...

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...

Q3FY21 revenues were in-line with I-direct estimates whereas profitability was above expectations due to better gross margins, cost control and a lower tax outgo. As per the management, FY21 US sales would be largely driven by gLevothyroxine, gProAir ramp-up and 15+ new launches. Domestic branded formulations are expected to remain stable. 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...

Lupin's (LPC) EBITDA was boosted by one-time licensing income (Rs 700mn est.).

We initiating coverage on Lupin with BUY rating and a target price of Rs 1,220 (P/E of 26x for FY23E earnings) which implies an upside of 18% from the current levels.

Lupin (LPC) delivered in-line 2QFY21 results. The EBITDA margin has been on an uptrend since hitting all-time lows in 3QFY20, led by cost rationalization, better-than-industry growth in Domestic Formulations (DF), and improved traction in the US/API segment. Near- to medium-term performance is expected to strengthen further on account of recently launched niche products and better operating leverage. We lower our EPS estimate by 5% for FY21, factoring in a gradual increase in Albuterol Sulfate offtake. We maintain our FY22 estimate and introduce...

India formulation remained muted with 1% YoY decline. We reduce our earnings estimate by 7% as we revise our EBITDAM lower to 16% (earlier 19%) for FY21E on the back of increased operating expense. 2QFY21 earnings were below our estimate even with most of the regions except India witnessed good growth. The disappointment was primarily at EBITDA level due to increase in operating expense of 34% QoQ, which led EBITDAM of 14% v/s our estimate of 20%. LPC guided for 18.5% EBITDAM for...

Q2FY21 revenues and operational performance were in-line with I-direct estimates while profitability was below expectations due to below expected other income and a higher tax outgo. As per the management, FY21 US sales would be largely driven by gLevothyroxine, gProAir ramp-up and 15+ new launches. Domestic branded formulations are expected to remain stable. Structurally, 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. Like other pharma majors, Lupin has also...