Broker’s Call: Lupin (Buy)

Target: 825 rupees

CMP: INR 764.90

Sales were up 14.1 per cent YoY at Rs 4,330 crore, led by Indian business (+9.5 per cent YoY), Asia Pacific (15 per cent YoY) and API business (+46 per cent YoY) Annual) while US business held steady at $175. on a quarterly basis.

US sales were affected by a lack of new and seasonal releases. gSupreb has been enjoying strong volume growth and Alubetrol’s market share has been stable at 20 percent.

The diabetes business was affected due to the popularization of patented products, while strong growth was observed in respiratory, cardiac and gynecological diseases.

We get more confidence in Lupin’s business because of: New launches in the US market such as Darunavir, Cynocobalamin, Diazepem Gel, Vereniciline, Bromfenac, etc. Except for gSpirva; double-digit growth in the business in India as the company has already increased MR figures to 1000; The upswing in the API business as the API industry is seeing demand return.

Lupin’s margins remain at 13 percent below industry levels of 22 percent, so we expect plenty of room for margin improvement in the coming quarters. We expect the overall environment to be in favor of the industry led by lower raw material prices, lower logistics and fuel costs.