Lupin Q2 PAT up 55% at Rs 630 cr; stock down

MUMBAI: Shares of Lupin continued to remain weak after the company reported a 55 per cent jump in net profit at Rs 630 crore. It had reported a net profit of Rs 406 crore in the corresponding quarter last fiscal.

The company reported net sales of Rs 3,173.4 crore, up 20.6 per cent, against Rs 2,631 crore, Year-on-Year (YoY).

According to analysts, the Q2 result lags estimates. The jump in bottomline has been on account of lower tax and higher other income.

EBITDA margins in Q2 increased to 26.7 per cent vs 25 per cent, YoY

The company has launched three products in the US market in Q2. According to the management, the first half of 2014 was driven by strong growth in US, India, Japan & API business. It expects significant development in dermatology & inhalation verticals

Analysts are of the view that Lupin is an over owned stock and thus some profit booking is seen in it. However, they don’t expect a sharp cut in the stock price on the back of disappointing results.

At 01:55 p.m.; the stock was at Rs 1366.40, down 1.98 per cent, on the BSE. It touched a high of Rs 1,406.85 and a low of Rs 1,322.65 in trade today.