Share price of pharmaceutical company Lupin was up 3 percent intraday on March 31 after Morgan Stanley initiated an overweight call on the stock with target of Rs 948 per share.
Lupin received an establishment inspection report from the US drug regulator. The company received the EIR for its Inhalation Research Center located at Coral Springs, Florida. The facility was inspected by the Food and Drug Administration between February 19, 2020 and February 26, 2020 on behalf of the UK Medicines and Healthcare products Regulatory Agency for Lupin’s generic Fostair application to the UK regulator.
"The receipt of the EIR with satisfactory VAI status validates our commitment towards ensuring the highest levels of quality and CGMP compliance at all our sites," said Vinita Gupta, CEO of Lupin.
Brokarage firm Motilal Oswal has a buy rating on the stock with target at Rs 815. While near-term outlook may be subdued, the broking house remain positive on the company due to limited price erosion in the base business, robust ANDA pipeline and better-than-industry growth in branded domestic formulation (DF).
It expect 23 percent earnings CAGR over FY19-22E, led by limited competition products in US generics and improved operating leverage in the DF segment.
Broking house CLSA has reiterated its bullishness on the pharma space. According to CLSA, the pharma earnings are relatively secure in a market rife with fear of a slowdown as the pharma offers stable revenue/profit streams from a secure domestic market. It has upgraded Lupin to outperform from sell and raised the target to Rs 660 from Rs 600 per share.
The stock was quoting at Rs 576.90, up Rs 16.80, or 3 percent. It has touched an intraday high of Rs 589.00 and an intraday low of Rs 568.90. It was trading with volumes of 22,432 shares, compared to its five day average of 174,696 shares, a decrease of -87.16 percent.Disclaimer: The views and investment tips expressed by investment experts 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.