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Lupin: Pricing erosion intensifies in US

Near-term growth visibility is low due to a lack of major product launches, aggravating pricing erosion and input cost pressure for Lupin

May 20, 2022 / 12:22 PM IST
Lupin: Pricing erosion intensifies in US

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 (CMP: Rs 635; Market Cap: Rs 28,854 crore) has posted another subdued quarter wherein financials reflect a profile similar to a commodity chemicals company. The top line declined sequentially by 5.5 percent due to weak numbers in both India (-8 percent QoQ) and the US (-10 percent QoQ). The EBITDA margin was just 7.3 percent as it got dragged by pricing erosion, drug recalls, inflation in input materials, and freight. In addition, impairment charges of Rs 126 crore for Gavis...

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