Superior performance and controlled costs drive earnings

Company
11 Mar 2024
5 Min read 
  • Lupin's 3QFY24 results beat estimates, driven by superior performance and controlled costs.
  •  Earnings estimates for FY24/FY25/FY26 raised by 18%/16%/14%.
  •  Lupin's profitability is improving, with a strong turnaround in business and better margins.
  •  Upgrade to Neutral rating from Sell, with a target price of INR1,480.
  •  Revenue growth in key markets, including the US, domestic formulation, and ROW.
  •  Gross margin and EBITDA margin expanded significantly.
  •  Strong US generics launch pipeline expected over the next 2-3 years.
  •  Focus on increasing market share in g-Spiriva and growing in new areas such as biosimilars.
  •  Expect 9% sales CAGR in formulations and 14% earnings CAGR over FY24-26.
  •  Financials and valuations show positive growth and attractive ratios.
  •  Efforts underway to sustain better profitability and investments in complex products.
  •  Management expects a response from the USFDA on g-Dulera in the next three months.
  •  Lupin expects to grow 20-30% better than the industry in the domestic formulation segment.
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