Brokerages up target price on Lupin to over Rs 1,000 post Q2 results
As many as seven brokerage firms have a target price of over Rs 1,000, which translates into gains of over 10 per cent in the next one year.
By ET Online | Updated:
NEW DELHI: Analysts at top brokerage firms have maintained their respective ratings on Lupin post its results for the quarter ended September 30, but have increased there target prices over Rs 1,000.
As many as seven brokerage firms have a target price of over Rs 1,000, which translates into gains of over 10 per cent in the next one year.
Lupin posted strong results for the quarter ended September 30, with revenue growing by 18 per cent to Rs 2631.5 crore, led by the rupee depreciation, recovery in India and strong performance in RoW.
On Wednesday, the drug major posted 39.82 per cent rise in consolidated net profit at Rs 406.20 crore for the second quarter on account of robust sales in the US market.
However, Japan remains under pressure, owing to a depreciating yen and loss of contractual business from I’rom. Operating performance was encouraging, with an EBIDTA growing by 28 per cent and margin expanding by 500 bps to 28 per cent.
“Translation gains on inventory, lower contribution of traded goods and the rupee depreciation aided margin expansion,” Elara Securities said in a report maintain an ‘Accumulate’ rating on the stock with a 12-month target price of Rs 1,008.
“We expect earnings momentum for Lupin to pick up in India as market conditions revive. For the US market, the company will benefit from the monetization of its product pipeline, which includes 100 ANDA pending approval, including 25 FTFs,” said the brokerage firm.
Lupin reported results which were largely in line with expectations as better margins offset slower revenue growth; however, some analysts feel that growth and margins are likely to come under pressure going forward led by price cuts and increased competition.
Global brokerage firm Jefferies, expects earnings growth for Lupin to slow down going forward as various businesses are impacted by price cuts and increased competition which maintains a ‘hold’ rating on the stock.
US to lead growth
For the near term, Lupin will benefit from Alinia and Locoid Lotion in the branded space. The company has commenced marketing low doses of Antara as well
Elara Securities is of the view that on the generics side, the company is awaiting several large opportunities like generic Yaz (annual sales of $500 million), Niaspan (annual sales of $850 million), Trilipix (annual sales of $200 million) and Cymbalta (annual sales of $3.0 billion).
Timely approval would significantly boost earnings, says the brokerage firm.
We have collated view & recommendations from various brokerage houses on Lupin and its movement of stock in the next one year:
Source: ET Now
As many as seven brokerage firms have a target price of over Rs 1,000, which translates into gains of over 10 per cent in the next one year.
Lupin posted strong results for the quarter ended September 30, with revenue growing by 18 per cent to Rs 2631.5 crore, led by the rupee depreciation, recovery in India and strong performance in RoW.
On Wednesday, the drug major posted 39.82 per cent rise in consolidated net profit at Rs 406.20 crore for the second quarter on account of robust sales in the US market.
However, Japan remains under pressure, owing to a depreciating yen and loss of contractual business from I’rom. Operating performance was encouraging, with an EBIDTA growing by 28 per cent and margin expanding by 500 bps to 28 per cent.
“Translation gains on inventory, lower contribution of traded goods and the rupee depreciation aided margin expansion,” Elara Securities said in a report maintain an ‘Accumulate’ rating on the stock with a 12-month target price of Rs 1,008.
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“We expect earnings momentum for Lupin to pick up in India as market conditions revive. For the US market, the company will benefit from the monetization of its product pipeline, which includes 100 ANDA pending approval, including 25 FTFs,” said the brokerage firm.
Lupin reported results which were largely in line with expectations as better margins offset slower revenue growth; however, some analysts feel that growth and margins are likely to come under pressure going forward led by price cuts and increased competition.
Global brokerage firm Jefferies, expects earnings growth for Lupin to slow down going forward as various businesses are impacted by price cuts and increased competition which maintains a ‘hold’ rating on the stock.
US to lead growth
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For the near term, Lupin will benefit from Alinia and Locoid Lotion in the branded space. The company has commenced marketing low doses of Antara as well
Elara Securities is of the view that on the generics side, the company is awaiting several large opportunities like generic Yaz (annual sales of $500 million), Niaspan (annual sales of $850 million), Trilipix (annual sales of $200 million) and Cymbalta (annual sales of $3.0 billion).
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Timely approval would significantly boost earnings, says the brokerage firm.
We have collated view & recommendations from various brokerage houses on Lupin and its movement of stock in the next one year:
| Brokerage Name | Rating | Target Price (Rs.) |
| CLSA | BUY | Raised to Rs 1075 from Rs 1030 |
| Religare Securities | BUY | Rs 1115 |
| HSBC | Overweight | Raised to Rs 1055 from Rs 935 |
| Barclays | Overweight | Raised to Rs 1019 from Rs 894 |
| Credit Suisse | Neutral | Raised to Rs 950 from Rs 830 |
| Macquarie | Neutral | Raised to Rs 900 from Rs 860 |
| UBS | BUY | Rs 1100 |
| BofA-ML | BUY | Rs 1100 |
| Citigroup | BUY | Rs 1035 |
| Jefferies | Hold | Raised to Rs 840 from Rs 750 |
Source: ET Now
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