Press "Enter" to skip to content

What should investors do with Lupin post Q2 result: buy, sell or hold? –

Pharma (Representational image: Shutterstock)

Lupin share price fell in the early trade on May 14, a day after the drugmaker reported an 18.2 percent year-on-year (YoY) growth in net profit (profit after tax) at Rs 460.4 crore in the quarter ended March 31 led by cost optimisation and growth in India and other emerging markets.

The company reported a net profit of Rs 390 crore during the corresponding period of the previous year.

Lupin’s revenues dropped by 1.6 percent YoY to Rs 3,783 crore compared to the previous year’s Rs 3845.7 crore. On a QoQ basis, the revenue dropped 5.8 percent.

Also Read – Lupin Q4 Net profit grows 18.2% led by cost optimisation, India sales growth

Here is what brokerages have to say about the stock and company after March earnings:

Nomura | Rating: Buy | Target: Raised to Rs 1,399

The sustained control on costs and new product launches will drive earnings. The company guided towards a double-digit growth in FY22 US revenue. The key risk to estimates is delay or disappointment with inhalation programme and high-risk or earnings-dilutive acquisition.

CLSA | Rating: Sell | Target: Raised to Rs 1,080 from Rs 990

It was operationally a weak quarter with an uncertain earnings outlook. The key positives are more than priced in. The patchy execution record keeps earnings downgrade risk high. CLSA raises FY22-23 EPS estimates by 3-5 percent on lower tax rate guidance.

Dolat Capital | Rating: Buy | Target: Rs 1,271

We expect FY22 to be a crucial year for Lupin to validate its efforts in the complex generics space. With the recovery in domestic segment, US scaling-up to quarterly run-rate of $200 million (market share gains in Albuterol, levothyroxine, recent launches such as gTykerb, gVimovo-AG, gTacrolimus shall offset competition in Famotidine), we believe Lupin is well-positioned for a strong recovery in margins and return ratios over the next two years.

Sharekhan | Rating: Buy | Target: Rs 1,400

Lupin’s US business is expected to grow in double digits for FY2022 and could touch $1-billion mark by FY2023, backed by a ramp-up of gAlbuterol, new launches offering high market potential and growth in the base business. The domestic formulations business is also expected to record a double-digit growth in FY2022 supported by a chronic heavy portfolio and likely pick up in acute therapies.

At 0918 hours, Lupin was quoting at Rs 1,196.95, down Rs 13.80, or 1.14 percent on the BSE.

The share touched a 52-week high of Rs 1,246.30 on May 11, 2021 and a 52-week low of Rs 826.75 on May 12, 2020. It is trading 3.96 percent below its 52-week high and 44.78 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. advises users to check with certified experts before taking any investment decisions.