Buy Lupin, target price Rs 1150: Emkay Global

Emkay Global has buy call on Lupin Ltd. with a target price of Rs 1150. The current market price of Lupin is Rs 941.9. Time period given by analyst is one year when Lupin Ltd. price can reach defined target.

Lupin Ltd., incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 42717.22 Crore) operating in Pharmaceuticals sector.

Lupin Ltd. key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Other Operating Revenue and Other Services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4164.14 Crore, down -3.11 % from last quarter Total Income of Rs 4298.02 Crore and up 7.88 % from last year same quarter Total Income of Rs 3859.96 Crore. Company reported net profit after tax of Rs -2094.89 Crore in latest quarter.

Investment Rationale
The brokerage expects US revenue to grow by ~US$5mn qoq, driven by meaningful Albuterol ramp-up (24% qoq) and new product launches, offset in part by pricing pressure, including in Albuterol, due to Hikma’s launch. Expect low-teens growth in India, RoW and EMEA businesses. It expects ~100bps EBITDA margin expansion qoq due to the ramp-up in Albuterol.

Promoter/FII Holdings
Promoters held 46.81 per cent stake in the company as of 31-Dec-2021, while FIIs owned 15.28 per cent, DIIs 24.83 per cent.