Buy Lupin, result in line with expectation: Quant

Shardul Pradhan, analyst, Quant Capital, says that the result of Lupin is in line with the expectation. He also expect a healthy growth in the bottom-line for FY13 for the company.

Below is the edited transcript of his interview to CNBC-TV18. Q: What is your view on Lupin numbers?
A: The numbers are in line with our expectations we had for this quarter. Their other operating income has come to the rescue of the margin which we expected to be around 21 percent. Q: Do you see more up side on the stock?
A: Yes. We have always been very comfortable with this company and time and again quarter after quarter they have either met expectations or exceed that expectation. I think going forward there is still significant upside and they still have lot of interesting launches to come into play, primarily oral contraceptives. Q: With 25-26 percent increase in revenue, are you factoring similar pro-rata performance?
A: Yes, we are looking at similar performance even for the full year. Q: A fairly big jump of over 25 percent even at the EBITDA level?
A: Even after taking depreciation down, there is EBITDA margin of 22 percent which on a sustainable basis is doable for Lupin going forward. Q: For FY13. What is your full year expectation?
A: We expect the company to have a top-line growth of 30 percent. The company also has lot of niche opportunities which would come into play and that should also help them sustain their EBITDA margin. We also expect a healthy growth in the bottom-line for FY13. Q: What is your call on the stock?
A: Buy.