Overweight Lupin Ltd., target Rs 1986: Morgan Stanley

Morgan Stanley has an overweight call on Lupin Ltd. with a target price of Rs 1986. The current market price of Lupin Ltd. is Rs 1678.5. Time period given by analyst is year, when Lupin Ltd. price can reach defined target. The Goa plant is an important site, which contributes about 45-50 per cent of its total US sales. Majority of pending ANDAs (163total, 105 ex GAVIS) are from non-Goa sites. A partial resolution of Goa observations would address key stock overhang at least in the short term. Recent EIRs for Mandideep, Aurangabad imply FDA risks have abated considerably. It looks like that now the market attention is likely to finally shift to new approvals and earnings trajectory.