Prabhudas Lilladher upgrades Lupin to hold, raises target price to Rs 760

Prabhudas Lilladher has upgraded Lupin to hold from reduce in the long term and raised target price to Rs 760 from Rs 730. The stock ended down 1% at Rs 728.70 on Wednesday while the BSE Sensex closed 229.02 points down at 40,116.06.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 4296.90 crore, down -1.35 % from last quarter sales of Rs 4355.83 crore and up 10.43 % from last year same quarter sales of Rs 3890.93 crore. The company has reported a net profit after tax of Rs -124.40 crore in the latest quarter.


Investment Rationale

The brokerage upgraded the drug maker after it sold its Japanese generic business to a private equity investor named Unison at a valuation of $526 million. With strategy of focusing in complex generics, injectable and specialty products in US and acquisition of brands in US and India, Lupin is better off with divestment of nonfocus geography, said the brokerage.