Buy Lupin, target price Rs 2,400: Sharekhan

Sharekhan has a buy call on Lupin with a target price of Rs 2400. The current market price of Lupin Ltd. is Rs 2066.55 .Lupin, incorporated in 1983, is a Large Cap company with a market cap of Rs 94401.14 crore, operating in Pharmaceuticals sector.

Lupin's key products/Revenue Segments include Pharmaceuticals, Other Services, Export Incentives, Other Operating Revenue and Scrap for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 5715.02 crore, up .83% from last quarter Total Income of Rs 5668.11 crore and up 12.52% from last year same quarter Total Income of Rs 5078.96 crore. The company has reported net profit after tax of Rs 859.48 crore in the latest quarter.

Investment Rationale
Lupin Management has increased its EBITDA margin guidance to 23% for FY2025E due to new product launches in low competition space and expects currentnew products to maintain growth momentum till FY26E. Hence, Sharekhan has increased the EPS and have introduced FY27E. They have given a buy call with a target price of Rs 2400..

Promoter/FII Holdings
Promoters held 46.96 per cent stake in the company as of 30-Sep-2024, while FIIs owned 21.5 per cent, DIIs 25.06 per cent.