Moneycontrol
Feb 13, 2017 04:53 PM IST | Source: Moneycontrol.com

Buy Lupin; target of Rs 1760: ICICI Direct

ICICI Direct is bullish on Lupin has recommended buy rating on the stock with a target price of Rs 1760 in its research report dated February 10, 2017.

Buy Lupin; target of Rs 1760: ICICI Direct


ICICI Direct's research report on Lupin


Revenues grew 26% YoY to Rs 4483 crore (I-direct estimate: Rs 4351 crore) mainly on account of 58% growth in the US to Rs 2176 crore (Idirect estimate: Rs 1988 crore). Strong US sales were due to Gavis consolidation and robust sales in Metformin (anti-diabetic). Domestic sales grew 12% YoY to Rs 991 crore (I-direct estimate: Rs 976 crore).


Outlook


India and Japan are likely to complement the US driven growth. However, due to multiple overhangs in the US for generic players we have reduced our multiple to 21x from 22x earlier. Accordingly, our new target price is Rs 1760 based on FY19E EPS of Rs 63.8.

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