Equirus retains reduce on Lupin, target price Rs 684

Equirus has retained reduce rating on Lupin with a target price of Rs 684 by December 2020. Shares of Lupin ended down 0.8% at Rs 726.40 on Thursday while BSE Sensex closed 453.07 points up at 39,052.06.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 4355.83 crore, up .69% from last quarter sales of Rs 4325.93 crore and up 15.40% from last year same quarter sales of Rs 3774.57 crore. The company has reported net profit after tax of Rs 301.74 crore in latest quarter.


Investment Rationale

The brokerage said its analysis of Lupin’s pipeline indicates that its near termpipeline is thin and its US business growth is contingent upon (a) an on-time launch of generic of ProAir and generic of Apriso and (b) timely resolution of USFDA issues at four facilities. The Street has built in a 2 times increase in earnings over FY19-FY21.