Lupin Ltd. share price target

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...

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...

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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.

LPC's 4QFY21 operational performance was slightly below our estimates, led by a weak Flu season in the US and YoY decline in API sales. In addition to the ongoing exercise to control opex, it remains on track for the review process of limited competition products for developed markets. We have raised our FY22E/FY23E EPS by 2%/9% to factor in: a) outperformance in the domestic formulation (DF) segment, b) niche launches in the US and European market, c) extended benefit of cost savings in DF, and d) lower effective tax rate. We value LPC at 25x 12-month forward...

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,...

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