Reduce Lupin; target of Rs 700: Sharekhan

reduce

Sharekhan's research report on Lupin

Q4FY2023 financial performance strongly beat expectations, largely driven by more-thananticipated improvements in the costs. Yet, while competitive pressures have led to restructuring of its US business, India business’ revenue growth has been hit by loss of Cidmus brand and stiff competition in diabetes segment on entry of generic players. Company is also grappling with USFDA compliance issues in many key facilities including Mandideep and Pithampur.

Outlook

Stock still trades at a higher valuation of ~ 33.5x/21.3x its FY2024E/FY2025E earnings as compared to peers trading at ~ 18.5x/15.8x their FY2024E/FY2025E estimates. Hence, we maintain a Reduce on Lupin Ltd. with a revised PT of Rs. 700 (vs. Rs. 660 earlier).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Lupin - 11 -05 - 2023 - khan