Neutral on Lupin, target price Rs 1320: Motilal Oswal

Motilal Oswal has neutral call on Lupin with a target price of Rs 1320. The current market price of Lupin is Rs 1187.05. 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 54257.88 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3841.32 Crore, down -4.88 % from last quarter Total Income of Rs 4038.53 Crore and down -5.25 % from last year same quarter Total Income of Rs 4054.34 Crore. Company reported net profit after tax of Rs 464.20 Crore in latest quarter.


Investment Rationale
The near-to-medium term earnings trajectory remains unperturbed as critical inhaler products are manufactured at the site that is USFDA-compliant. However, the extended period to resolve regulatory issues at the five sites (partly due to the pandemic) is impacting the overall utilization of assets for the US market.

Promoter/FII Holdings
Promoters held 46.9 per cent stake in the company as of March 31, 2021, while FIIs held 17.9 per cent, DIIs 22.6 per cent and public and others 12.7 per cent.