Lupin has target of Rs 657: Maximus Securities

“Lupin is world's largest manufacturer of the anti-TB drugs based in Mumbai, Maharashtra, India, headed by Dr. Desh Bandhu Gupta. Lupin first gained recognition when it became one of the world's largest manufacturers of Tuberculosis drugs. The Company today has significant market share in key markets in the Cardiovascular (prils and statins), Diabetology, Asthma, Pediatrics, CNS, GI, Anti-Infectives and NSAIDs therapy segments, not to mention global leadership positions in the Anti-TB and Cephalosporins segments. The Company's R&D endeavors have resulted in significant progress in its NCE program. The Company's foray into Advanced Drug Delivery Systems (ANDA) has resulted in the development of platform technologies that are being used to develop value-added generic pharmaceuticals.”

“Lupin's world class manufacturing facilities, spread across India and Japan, have played a critical role in enabling the companies realize its global aspirations. Benchmarked to International standards, these facilities are approved by international regulatory agencies like US FDA, UK MHRA, Japan's MHLW, TGA Australia, WHO, and the MCC South Africa. Lupin has emerged as the 5th largest and the fastest growing Top 5 company in the U.S (by prescriptions), the only Asian company to achieve that distinction. The company is also the fastest growing, top 5 pharmaceutical players in India (ORG IMS) and the fastest growing top 10 Generic players in Japan and South Africa (IMS). Today, Lupin also has the unique distinction of being the fastest growing top 10 Generics players in the two largest pharmaceutical markets of the world The U.S (ranked 5th by prescriptions & growing at 52 %) and Japan (ranked 7th and growing at 23%). Lupin's Consolidated Revenues and Profit after Tax were Rs. 6,960 crore and Rs. 868 crore for FY 2011-12.”

“Lupin ltd posted Q4 sales in lines with the consensus estimates at Rs. 1,883 crore registering 24% y-o-y growth, whereas the net profit de-grew by 32% y-o-y. Growth in sales was aided by advanced & emerging markets which substantially grew by 30% & 29% respectively; this eventually supported overall growth of the company. Company’s gross & operating profit margins were standing at 59.5% & 17% respectively. Company’s operating margins were below expectations by 250 basis points. However, there was higher tax out go during the quarter on account of Goa and Manideep plants EOU (export oriented unit) status expiry coupled with resultant taxes on profits on unsold inventories in the overseas subsidiaries which held to de grew net profit to Rs. 156 crore.”

“According to the estimates, company is likely to attain top line growth of 20% in next 2 fiscals. Company is likely to maintain its operating & R&D costs, maintaining overall margins at 20%. Earnings will grow at a CAGR of approx 16-18% over FY10-14E. With this we come with target price of Rs. 657 (28x FY13E EPS),” says Maximus Securities research report.

Bodies Corporate holding more than 50% in Indian cos

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