Lupin stock hits all-time high on Nomura's 'buy' call, sees 9% upside

Lupin shares have gained a staggering 72 percent in the past month.

Shares of pharma major Lupin Limited surged 3 percent to Rs 2,57, a fresh all-time, on August 30 after international brokerage firm Nomura recommended a 'buy' call on the counter and raised the target price.

With a target price of Rs 2,427, Nomura envisions a 9 percent upside from the last close on the NSE. It expects improved growth and profitability across key markets, which could position the company for a premium over peers.

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US generics are seen as a strong support for near-term earnings, bolstered by traction in complex injectable filings. Some of these filings are expected to be commercialized within the next two years. Litigation-dependent upsides could further enhance near-term earnings, although downside risks remain for specific products like Albuterol MDI.

Nomura also factors in higher revenue contributions from Mirabegron in FY25 and Tolvaptan in FY26 and 27 compared to previous estimates, prompting an upward revision of FY25 and 26 EPS by 28 percent and 54 percent,  respectively.

Lupin was off to a robust start in Q1 after it reported a 77.2 percent year-on-year (YoY) jump in net profit at Rs 801.3 crore, while the company's revenue from operations increased 16 percent to Rs 5,600.3 crore as against Rs 4,814 crore in the corresponding period of the preceding fiscal.

At about 10 am, shares of the company were trading at Rs 2,220, up 1.3 percent from the last close on the NSE. Lupin shares have gained a staggering 72 percent in the past month.

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