Selling Lupin with a target at Rs 1602: Karvy Stock Broking

Karvy Stock Broking maintains a sell rating on Lupin post March quarter results with a 12-month target price of Rs 1602.

"We marginally upgrade our revenues for FY17E while be maintain are revenue for FY18E. We upgrade our EBITDAM by 120bps/40bps to 28.1%/27.1% for FY17E/FY18E respectively on account of better gross margins due to limited competition opportunities," said the brokerage note.

Karvy downgraded their EPS by 7.3%/10.6% to Rs 65.8/Rs 72.8 for FY17E/FY18E respectively due to amortization on account of Gavis acquisition. "We downgrade our recommendation to SELL with a price target of Rs 1602 based on 22x FY 2018E," added the note.