Motilal Oswal 's research report on Lupin
Albuterol Sulfate MDI (g-Proair) is Lupin (LPC)’s first device-based inhalation product to be approved by the USFDA. Based on the competitive scenario, we believe g-Proair could add USD80–90m to LPC’s revenues on an annualized basis. We raise our earnings estimate marginally by 2%/5% to factor the uptick on account of niche launches in the coming quarters. We further revise our PE multiple value to 25x (35% discount to three-year average) 12M forward earnings to arrive at target price of INR1,130. We remain positive on LPC as it is at an inflection point for growth in the developed markets, led by niche launches. It remains on track to: a) outperform in the Domestic Formulations (DF) market and b) complete remediation measures at sites under regulatory issues. Reiterate Buy.
Outlook
We value LPC at 25x 12M forward earnings to arrive at target price of INR1,130. Maintain Buy.
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