Lupin: Margin guidance downgrade keeps us cautious
The management of Lupin is confident of scaling back $200 million quarterly revenue run rate for US market by Q3, but at the same time, alluded to overall EBITDA margin guidance of 16-17 per cent in FY22
August 13, 2021 / 10:33 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Lupin’s (CMP: Rs 976; Market Cap: Rs 44,328 crore) quarterly result was weaker on account of elevated competitive pressures in the US market, which is now reflected in lower sales run rate and margin guidance downgrade.
Though the company has a strong pipeline for inhalation and injectables, monetisation of the same will catch up from next fiscal. Hence, in the absence of a near-term catalyst, Lupin warrants caution as the twin risk of pricing erosion and regulatory risk have come...