Accumulate Lupin; target of Rs 520: Unicon Investment

19563 Investors following Lupin. Share this News with them.

0

Like this story, share it with millions of investors on M3

Accumulate Lupin; target of Rs 520: Unicon Investment

Unicon Investment is bullish on Lupin and has recommended accumulate rating on the stock with a target of Rs 520 in its January 25, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate JSW Steel; target Rs 725: PINC Research Hold Godrej Consumer: PPFAS Research Buy ITC; target of Rs 226: FIFL ALSO READ See previous views by Unicon Investment See what other Experts & Brokerages are saying about Lupin See messages about Lupin Lupin BSE | NSE 30/05/12 Are Mutual Funds betting on Lupin?

Unicon Investment is bullish on Lupin and has recommended accumulate rating on the stock with a target of Rs 520 in its January 25, 2012 research report.

"Lupin Pharmaceuticals Ltd. (Lupin) reported strong Q3FY12 result, with 20.4% YoY growth in top-line (better than our estimates). The strong revenue growth was driven by robust performance of domestic formulations business that grew by 29.8% YoY and Rupee depreciation during the quarter. The operating margin expanded by 80 bps YoY, and came in at 20.5%. Operating profit posted a healthy growth of 26% YoY and stood at INR 3735mn. The net profit stood at INR 2351 mn with a YoY growth of 5%. The management remains confident of achieving CAGR of 21% in the revenue over FY12-14E."

"Revenue for Q3FY12 stood at INR 18189 mn posting a growth of 20.4% YoY. Domestic formulations business remained the major growth driver posting a growth of 30% YoY. Revenue from the Eli lily deal (around INR 270 mn) is included in the domestic formulation business. The US formulations business that contributes 34% of the revenue, grew by 23% in INR terms and 12% in USD terms (18% growth from branded formulations & 9% generics). The Japan business grew by 43% (including 1 month revenue from I'rom Pharma). The Row market registered a growth of 42% YoY. Operating margin expanded by 80ps YoY and stood at 20.5%. However, PAT margin contracted by 190 bps majorly on account of increased depreciation & Tax expenditure. Lupin recorded a translational loss of INR 340mn in other expenses."

"Considering the strong product pipeline and expected launch of limited competition product, we expect Lupin to deliver healthy growth in FY13e. Also the management guidance of 21% CAGR growth looks highly achievable going forward in FY12-14e. Currently the stock is trading at 17.2x its FY13e earnings. We recommend ACCUMULATE with a target price of INR 520," says Unicon Investment research report.

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment