Lupin Q4 net surges 40 pc
Pharmaceutical company Lupin said on Wednesday its fourth quarter net profit rose 40% on account of lower raw material costs and strong sales growth in developed markets.
By ET Bureau |
MUMBAI: Pharmaceutical company Lupin said on Wednesday its fourth quarter net profit rose 40% on account of lower raw material costs and strong sales growth in developed markets.
The company has also announced a five-for-one share split. Companies usually split shares to attract retail investors by making each unit more affordable.
For the January-March period, the company reported a net profit of Rs 221 crore, on the back of a 23% growth in revenue at Rs 1,285 crore from the same period last year. Sales from the US, Europe and Japanese markets were up 33% at Rs 713 crore, the company said. “There is 11-12% upside over the next year to Lupin’s stock after this result,” said Ranjit Kapadia, vice-president-institutional research, HDFC Securities. The brokerage has set a price target of Rs 2,014, he added. On Wednesday, Lupin shares ended 4.2% up at Rs 1,820.30 after a consistent rise throughout the day on sizeable volume.
In comparison, the benchmark index Sensex ended the day down 0.3%.
Lupin will trade at a price-to-earnings discount to its peers, because it did not outstrip competition in its domestic sales growth, Mr Kapadia said. India business accounts for 33% of the company’s total sales.
The company has also announced a five-for-one share split. Companies usually split shares to attract retail investors by making each unit more affordable.
For the January-March period, the company reported a net profit of Rs 221 crore, on the back of a 23% growth in revenue at Rs 1,285 crore from the same period last year. Sales from the US, Europe and Japanese markets were up 33% at Rs 713 crore, the company said. “There is 11-12% upside over the next year to Lupin’s stock after this result,” said Ranjit Kapadia, vice-president-institutional research, HDFC Securities. The brokerage has set a price target of Rs 2,014, he added. On Wednesday, Lupin shares ended 4.2% up at Rs 1,820.30 after a consistent rise throughout the day on sizeable volume.
In comparison, the benchmark index Sensex ended the day down 0.3%.
Lupin will trade at a price-to-earnings discount to its peers, because it did not outstrip competition in its domestic sales growth, Mr Kapadia said. India business accounts for 33% of the company’s total sales.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
