5 February 2016
3QFY16 Results Update | Sector: Healthcare
Lupin
BSE SENSEX
24,617
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol ‘000
Free float (%)
S&P CNX
7,489
LPC IN
450.5
811.6/12.0
2,127/1,540
5/19/29
2,456
53.5
CMP: INR1,802 TP: INR2,250(+25%)
Strong 3Q; recovery in US encouraging
Buy
Financials & Valuation (INR b)
Y/E Mar
2015 2016E
Net Sales
123.9
132.9
EBITDA
32.4
29.5
PAT
24.0
22.3
EPS (INR)
53.5
49.7
Gr. (%)
38.1
-7.1
BV/Sh (INR)
197.4
238.2
RoE (%)
30.4
22.8
RoCE (%)
40.6
26.2
P/E (x)
33.7
36.2
P/BV (x)
9.1
7.6
2017E
167.1
44.6
32.8
73.0
47.1
301.5
27.1
27.7
24.6
6.0
Estimate change
TP change
Rating change
Lupin’s 3QFY16 revenue grew 12% YoY to INR35.6b (4% beat) on the back of strong
India growth, recovery in US & Japan sales and higher other operating income.
Despite higher R&D (11% of sales in 3Q), EBITDA improved sequentially by 31% to
INR8.8b due to improvement in business mix and higher other operating income.
As a result, reported PAT also improved 30%QoQ to INR5.3b (7% beat). Other
operating income of INR2b includes one off of ~INR500m.
US recovers strongly:
US business for LPC grew 22% QoQ on the back of 18%
QoQ growth in generics business and ~56% QoQ growth in branded business
(USD15m). Though new launches contribution remains low (<5% contribution
YTD), strong ramp-up in base business coupled with Fortamet price increase
has led to sequential recovery in generic business (full quarter impact of price
increase to be visible in 4Q). Branded business growth is attributed to robust
sales for Suprax and Antara. Gluemtza FTF (launched on 1
st
Feb-16), coupled
with ramp-up of recent approvals and Gavis portfolio and upcoming launches
(including Nexium, Welbutrin, Ortho Tri-Cyclen Lo, etc). Gavis acquisition is
expected to close by Feb-16 end. Management re-iterated that Gavis sales
could triple in three years post closure of acquisition (current sales- USD120m).
India business delivers strong growth; Japan bounced back:
India business for
the company grew strongly at ~17% YoY to INR8.7b. According to AIOCD,
secondary sales growth for LPC stood at 15% in 3Q, outperforming the industry
growth of 14%, providing visibility of strong growth in coming quarters. Japan
sales for the company grew at 9% in constant currency terms whereas
reported numbers benefited due to favorable currency movement.
Management expects constant currency growth in this segment to remain at
~10% YoY.
Valuation and view:
Launch of Glumetza (under 180 days exclusivity), price hike in
Fortamet in 2Q and inclusion of Gavis portfolio is expected to drive 19% EPS CAGR
over FY15-18. We maintain our buy rating with TP of INR2,250 @25x FY18E PER (vs
INR2,390 @26x 1H FY18E PER earlier).
FY15
127,700
15.2
91,505
36,196
28.3
4,347
98
2,398
34,148
9,704
28.4
412
24,032
38.4
18.8
FY16E
138,228
8.2
103,394
34,833
25.2
4,683
401
2,500
32,249
9,352
29.0
350
22,546
-6.2
16.3
Quarterly Performance (Consolidated)
FY15
FY16E
1Q
2Q
3Q
4Q
1Q
2Q
3QE
4QE
Net Sales
33,408 31,734 31,776 30,782
31,502 33,213 35,558 37,829
YoY Cha nge (%)
38.0
20.6
6.5
0.9
-5.7
4.7
11.9
22.9
Tota l Expendi ture
22,260 23,409 22,947 22,888
23,336 26,491 26,787 26,780
EBITDA
11,148
8,325
8,829
7,894
8,166
6,721
8,772 11,049
Ma rgi ns (%)
33.4
26.2
27.8
25.6
25.9
20.2
24.7
29.2
Depreci a ti on
1,086
1,087
1,103
1,072
1,007
1,068
1,114
1,494
Interes t
26
21
26
25
24
102
92
184
Other Income
289
255
834
172
756
415
653
676
PBT
10,325
7,473
8,534
6,970
7,891
5,967
8,219 10,046
Ta x
4,029
1,926
2,387
1,362
2,644
1,851
2,909
1,948
Ra te (%)
39.0
25.8
28.0
19.5
33.5
31.0
35.4
19.4
Mi nori ty Interes t
49
94
133
137
-3
27
13
314
Reported PAT
6,247
6,300
6,015
5,470
5,250
4,088
5,298
7,785
YoY Cha nge (%)
107.5
34.3
26.3
-1.1
-16.0
-35.1
-11.9
42.3
Ma rgi ns (%)
18.7
19.9
18.9
17.8
16.7
12.3
14.9
20.6
E: MOSL es ti ma tes ; Qua rterl y nos wi l l not a dd up to ful l yea r nos due to res ta tement of pa s t qua rters
Y/E March
(INR Million)
3QFY16 vs Est
(Incl One-offs)
34,372
-63.7
26,304
8,067
23.5
1,100
100
400
7,267
2,180
30.0
150
4,937
-62.4
14.4
3.5
8.7
13.1
7.3
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(amey.chalke@motilaloswal.com); +91 22 39825423

Lupin
Top line outperforms on strong US and India sales
Excluding other operating income, Lupin's 3QFY16 net sales grew 7% YoY at
INR33.6b (v/s est. INR 34.4b). US business reported sequential improvement and
grew 22%YoY to INR14.1b in 3Q driven by price hikes, key product launches and
currency benefits. India business grew 17%YoY to INR8.7b led by greater traction in
chronic portfolio. Surprisingly, Japan business also grew 9%YoY to INR3.8b v/s our
estimates of INR3.2b. ROW business grew 11% YoY to INR3.3b, supported by 18%
YoY growth in Ex-South Africa region.
Higher other income lifted EBITDA margins
EBITDA increased 31% QoQ to INR8.8b (v/s estimate of INR 8.1b, 8% beat). EBITDA
margin beat of 120bps (17% vs 25% est.) was mainly driven by higher other
operating income; modest R&D and better business mix (with larger share of US and
India business). We believe the price hike in Fortamet, launch of Glumetza with
other key products and inclusion of Gavis business to pull overall margins to 27-28%
levels in FY17-18E.
Exhibit 1: US growth recovers
Sales (INR b)
35
18
9
25
24
26
30
31
33
21
20
36
18
5
31 31
31
31
(6)
32
2
34
7
24
22
24
25
26
YoY Growth (%)
Exhibit 2: EBITDA margins improved
EBITDA (INR b)
33
26
EBITDA margin (%)
28
26
26
25
20
0
6
5
6
7
8
11
8
9
8
8
7
9
Source: Company, MOSL
Source: Company, MOSL
Exhibit 3: Scale up in R&D expense
R&D expense (INR b)
9
9
% of sales
10
10
12
11
Exhibit 4: Healthy product mix to led to higher margins
Gross Profit (%)
68
64
64
68
66
66
Gross Margin (%)
69 68
67
64
67
8
8
8
8
7
8
62
18
19
21
22
20
21
21
21
20
22
2
2
2
3
2
2
3
3
3
3
4
4
16
15
Source: Company, MOSL
Source: Company, MOSL
5 February 2016
2

Lupin
US Generic business - (42% of sales)
Even though US business was flat YoY, sequential growth of 22% was
encouraging. US sales stood at INR14b, aided by 50% sequential growth in US
branded business (pick up in Suprax and Antara sales). Generic business also
grew 20% sequentially due to seasonality and price hikes in key products.
The Company received 9 approvals and launched 4 products in the US market (in
3Q) taking the total marketed products to 87. It has 98 pending filings in US
which includes 37 FTF opportunities (17 exclusive opportunities). Out of 87
marketed products, Lupin is market leader in 33 products. Going forward, LPC
expects to launch 15-20 generic products annually over FY17-18, which will
support 18-20% growth momentum over FY16-18E along with Gavis’s portfolio.
LPC continues to look at expanding its brand portfolio in US and still searching
for good opportunities in branded business.
Exhibit 5: US revenues: Generic business continues to drive growth
US Generics (USD m)
24
17
149
195
214
27
17
15
246
195
22
195
US Branded (USD m)
23
199
15
201
30
181
20
154
10
178
10
168
Source: Company, MOSL
India business – (~26% of sales)
In 3Q, domestic business grew 17% to INR 8.7b (in line), mainly on account of
high growth chronic therapies.
The management expects to post 17%YoY growth in FY16E. We have factored in
16% growth in FY16E.
Japan (~11% of sales)
In 3Q, Japanese business recorded 9% growth in constant currency, reflecting
improving traction in the business. In rupee terms also, business grew 9% YoY to
INR 3.7b.
Kyowa sales also reported 10% improvement, mainly on account of higher
number of approvals and seasonality. Kyowa accounts for ~80% of total Japan
revenues. I’rom (~20% of Japan sales) reported a 7% YoY increase in INR terms.
(Contract business accounts for 22% of I’rom business).
The management is confident of growing Japan business at 10% rate over next
few years.
5 February 2016
3

Lupin
Exhibit 6: Domestic Formulations - Growth recovering
India Sales (INR b)
43
29
9
6
-5
6
7
14
2
7
6
8
8
7
7
9
20
14
15
16
17
9
1
2
1
2
YoY Growth (%)
Exhibit 7: Japan business to grow at 10%YoY
Kyowa ex I'rom (INR b)
1
3
1
3
1
3
1
3
I'rom (INR b)
1
2
1
3
1
3
9
9
1
2
1
2
1
2
Source: Company, MOSL
Source: Company, MOSL
Other highlights
Management has guided for higher growth in 4Q and expects 15-20 approvals
every year from FY17; The Company has already received target action dates for
almost all pending products at US FDA (except 6 products).
LPC expects Gavis acquisition to get closed in Mar’16. The company is waiting
for FTC approval and expects to to receive it very soon.
Over last 15 months, US FDA has inspected 12 facilities for LPC. 9 out of 12
facilities have been cleared by the US FDA without any 483 observations. Other
three includes – Goa, Indore and Aurangabad.
Goa and Aurangabad facilities are yet to receive EIR from US FDA whereas
Indore facility has already received EIR for their 483 observations. However, LPC
has been receiving ANDA approvals from all three facilities.
5 February 2016
4

Lupin
Valuation and view
Lupin has consistently re-rated over the last five years following consistent earnings
performance, improvement in Balance Sheet health and return ratios. Recent
correction largely factors the likely earnings slowdown in FY16E due to delay in key
US approvals as well as genericisation of Suprax brand.
Long term outlook remains firm
However, we believe long term growth outlook for Lupin remains firm and we
expect the company to sustain premium multiples (vs peers). Strong execution track
record, and high capital efficiency justify premium multiple.
We value Lupin at 25x FY18E EPS, at par with large cap peers (1 year forward P/E)
which is justified noting:
Robust earnings growth of 20%, despite sizeable base
High return ratios (FY15E: RoE of 30%, RoCE of 41%)
Key catalysts to drive stock performance over medium term are:
Potential M&A to expand reach in RoW markets (Eastern Europe, Latam).
Rebuilding of US branded business, with scale-up of new brands Alinia and
Locoid) and potential new acquisitions.
Niche US generic launches like gNexium, gGlumetza, gWelchol etc.
We believe that the following factors pose risks to our thesis:
Regulatory delays affecting key US launches.
Slower than expected turnaround of Japan business (I’rom acquisition), delaying
margin improvement.
Exhibit 8: P/E valuation band (10 years)
49.0
37.0
25.0
13.0
1.0
21.9
18.1
7.0
0
-80
PE (x)
Peak(x)
Avg(x)
38.2
80
8.7
37.9
Min(x)
Exhibit 9: Higher premium relative to Sensex
160
Lupin PE Relative to Sensex PE (%)
LPA (%)
Source: Company, MOSL
Source: Company, MOSL
5 February 2016
5

Lupin
Operating metrics
Exhibit 10: Key operating metrics
4QFY13
Revenue Mix (%)
US
India
Japan
Europe
ROW
APIs
Revenue Gr. (%)
US
India
Japan
Europe
ROW
APIs
As % of sales
Raw material
Staff cost
R&D cost
Other expenses
Tax Rate
Margins (%)
Gross Margins
EBITDA Margins
EBIT Margins
PAT margins
45.2
22.3
10.8
2.6
9.5
9.6
35.6
49.0
43.0
2.2
45.4
50.7
0.2
35.6
13.0
7.9
19.4
20.7
64.4
24.1
21.1
16.1
1QFY14
41.4
24.3
12.1
4.0
8.1
10.0
9.1
24.9
(5.1)
(12.2)
106.3
7.1
4.8
36.1
13.6
8.1
20.2
34.9
63.9
22.1
21.8
16.6
2QFY14
39.3
25.2
11.8
2.8
10.0
10.9
17.5
32.4
9.4
(6.3)
18.4
20.2
19.6
32.0
14.0
8.3
22.1
38.2
68.0
23.7
25.9
15.4
3QFY14
45.5
21.8
12.5
2.2
8.1
10.0
21.0
30.6
13.9
1.7
10.5
23.2
26.3
37.6
12.7
9.1
16.0
34.4
62.4
24.6
24.9
16.0
4QFY14 1QFY15 2QFY15
48.2
18.9
10.5
2.6
10.2
9.5
20.3
28.2
1.8
16.9
20.5
30.0
10.0
32.1
12.8
8.0
20.6
29.2
67.9
26.5
26.5
18.1
48.9
23.2
10.4
2.1
6.5
8.9
35.7
60.3
29.2
16.8
(29.3)
8.8
20.4
33.7
12.5
7.4
14.1
39.0
66.3
32.2
31.5
19.0
40.8
25.6
11.1
2.8
9.4
10.2
18.4
22.9
20.4
11.8
18.2
11.7
11.2
34.3
14.1
9.1
17.6
23.1
65.7
24.9
24.0
20.2
3QFY15 4QFY15
44.7
23.7
10.9
2.6
9.5
8.8
5.4
3.5
14.4
(8.0)
21.8
24.0
(7.2)
32.5
13.2
8.3
18.9
28.0
67.5
27.0
27.2
19.1
45.1
21.7
9.6
2.9
10.5
10.1
0.1
(6.3)
15.2
(8.5)
12.1
2.8
5.5
31.3
15.8
10.1
17.7
19.5
68.7
25.6
22.9
17.9
1QFY16 2QFY16
38.7
28.8
10.5
2.8
8.6
10.6
(6.4)
(25.8)
16.2
(5.4)
24.1
23.5
11.4
33.0
13.9
8.7
17.0
28.4
67.0
28.7
27.2
19.1
36.3
27.5
10.2
3.6
12.2
10.1
2.0
(9.2)
9.4
(6.5)
32.2
31.9
1.1
32.0
15.8
10.2
17.9
33.5
68.0
25.9
25.7
17.1
3QFY16
41.8
25.9
11.1
3.0
9.8
8.2
6.8
0.0
17.1
9.3
25.5
10.9
0.1
35.5
16.5
12.2
19.1
31.0
64.5
20.2
19.1
12.9
Source: Company; MOSL
5 February 2016
6

Lupin
Story in charts
Exhibit 11: Revenue mix in FY15
US
9
10
9
43
Europe
India
Japan
23
3
RoW
APIs
Source: Company, MOSL
5
40
9
49
9
60
9
85
11
100
12
114
12
13
Exhibit 12: Healthy revenue growth on expanded base
Formulations (INR b)
API (INR b)
14
121
154
186
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 13: US business to be driven by strong
ANDA pipeline + Gavis acquisition
Generic sales (USD m)
83
50
Branded Sales (USD m)
60
72
Exhibit 14: Forecast sustained improvement in margins
EBITDA (INR b)
20.3
24.2
EBITDA margins (%)
26.1
26.7
22.2
26.9
18.0
17.8
17.3
837
FY15
791
FY16E
949
FY17E
1,187
FY18E
9
FY10
10
FY11
12
FY12
20
FY13
27
FY14
32
30
45
54
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 15: Expect strong EPS CAGR of 24% over FY15-18E
Core EPS (INR/ share)
0
0
0
17
19
18
29
2
39
53
Exhibit 16: Higher tax outflow constrained PAT margins
PBT margin (%)
26
18
18
15
18
21
PAT margin (%)
28
28
24
29
0
14
50
73
90
13
14
17
19
17
20
20
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 17: Industry leading return ratios
RoCE (%)
33.3
25.3
29.6
21.7
FY11
FY12
24.6
28.5
28.6
30.4
22.8
40.1
40.6
26.2
27.7
27.1
27.9
26.4
RoE (%)
Exhibit 18: Rich ANDA pipeline
ANDA filed
ANDA pending
306
127
58
86
FY10
148
100
FY11
173
109
FY12
176
98
FY13
192
90
93
FY14
161
FY15
FY13
FY14
FY15
FY16E FY17E FY18E
Source: Company, MOSL
FY09
Source: Company, MOSL
5 February 2016
7

Lupin
Financials and Valuation
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2011
56,478
18.3
10,068
17.8
1,712
8,356
345
1,934
0
9,944
1,149
11.6
148
8,646
8,646
25.6
2011
892
31,919
32,811
11,463
1,412
46,200
25,835
9,075
16,760
4,904
32
35,359
12,000
12,556
4,202
6,601
14,663
11,941
2,723
20,696
46,200
2012
68,204
20.8
11,821
17.3
2,275
9,546
355
2,768
0
11,960
3,086
25.8
196
8,678
7,917
-8.4
2012
893
39,236
40,129
15,557
1,442
57,852
36,274
14,422
21,852
4,437
28
47,393
17,327
17,800
4,025
8,241
21,503
17,565
3,939
25,889
57,851
2013
93,694
37.4
19,981
21.3
3,322
16,659
410
2,997
0
19,246
5,842
30.4
263
13,142
13,142
66.0
2013
895
51,147
52,042
10,240
1,632
64,509
41,138
16,840
24,298
3,107
21
55,305
19,489
21,870
4,349
9,597
23,926
19,241
4,684
31,379
64,509
2014
109,343
16.7
26,505
24.2
2,610
23,895
267
3,688
1,000
28,317
9,622
34.0
331
18,364
17,364
32.1
2014
897
68,419
69,316
5,992
1,779
77,756
45,638
19,283
26,355
3,041
1,785
62,970
21,295
24,641
7,975
9,060
23,597
18,818
4,779
39,374
77,756
2015
123,890
13.3
32,386
26.1
4,347
28,039
98
6,208
0
34,148
9,704
28.4
412
24,032
24,032
38.4
2015
899
87,842
88,741
4,710
1,182
94,874
45,445
19,174
26,271
5,760
16,584
64,510
25,036
26,566
4,814
8,095
35,662
28,299
7,363
28,848
94,874
2016E
132,928
7.3
29,533
22.2
4,683
24,850
401
7,800
0
32,249
9,352
29.0
350
22,546
22,322
-7.1
2016E
899
106,181
107,080
48,810
1,182
157,663
69,610
29,206
40,403
3,130
2,025
87,568
25,472
36,182
17,001
8,913
27,789
21,771
6,019
59,779
157,663
2017E
167,125
25.7
44,561
26.7
5,203
39,359
779
8,700
0
47,279
13,711
29.0
375
33,193
32,828
47.1
2017E
899
134,641
135,540
55,110
1,182
192,798
79,120
35,549
43,571
1,815
2,025
128,525
30,296
45,186
43,754
9,289
35,464
28,483
6,980
93,061
192,799
(INR Million)
2018E
200,673
20.1
53,935
26.9
5,624
48,311
827
9,850
0
57,335
16,512
28.8
375
40,447
40,447
23.2
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
2018E
899
170,355
171,254
55,110
1,182
228,887
89,472
42,404
47,068
1,157
2,025
167,683
36,271
54,098
67,611
9,703
41,373
34,101
7,272
126,310
228,887
5 February 2016
8

Lupin
Financials and valuation
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Net Debt/Equity (x)
2011
19.4
23.2
73.5
3.0
18.2
92.9
77.5
24.5
14.4
80.7
0.2
29.6
25.3
1.2
81
78
195
0.2
2011
10,068
1,934
-2,647
-1,173
0
8,181
-4,545
3,636
233
0
-4,312
174
64
-345
-1,575
-1,682
2,187
2,015
4,202
2012
17.7
22.8
89.9
3.4
20.5
101.5
78.9
20.0
12.0
69.1
0.2
21.7
24.6
1.2
95
93
246
0.3
2012
11,821
2,768
-5,370
-3,055
0
6,164
-8,736
-2,572
4
0
-8,733
430
4,094
-355
-1,777
2,392
-177
4,202
4,025
2013
29.4
36.8
116.3
4.0
15.9
61.3
48.9
15.5
8.7
40.6
0.2
28.5
33.3
1.5
85
76
198
0.1
2013
19,981
2,997
-5,166
-5,652
0
12,160
-4,497
7,663
7
0
-4,490
475
-5,317
-410
-2,095
-7,348
323
4,025
4,348
2014
38.7
44.5
154.6
6.0
16.0
46.5
40.4
11.6
7.3
30.3
0.3
28.6
40.1
1.4
82
71
180
0.0
2014
26,505
3,688
-4,368
-9,475
1,000
17,349
-6,098
11,251
-1,764
0
-7,862
1,593
-4,248
-267
-2,939
-5,861
3,626
4,349
7,975
2015
53.5
63.1
197.4
7.0
15.3
33.7
28.5
9.1
6.5
24.9
0.4
30.4
40.6
1.3
78
74
248
0.0
2015
32,386
6,208
7,364
-10,300
0
35,657
-17,191
18,466
-14,799
0
-31,991
-1,766
-1,282
-98
-3,681
-6,828
-3,161
7,975
4,814
2016E
49.7
60.1
238.2
8.0
18.7
36.2
30.0
7.6
6.3
28.4
0.4
22.8
26.2
0.8
99
70
183
0.3
2016E
29,533
7,800
-18,743
-9,352
0
9,238
-51,101
-41,863
14,559
0
-36,542
0
44,100
-401
-4,207
39,491
12,187
4,814
17,000
2017E
73.0
84.6
301.5
9.0
14.3
24.6
21.3
6.0
4.9
18.3
0.5
27.1
27.7
0.9
99
66
201
0.1
2017E
44,561
8,700
-6,530
-13,711
0
33,020
-7,055
25,965
0
0
-7,055
0
6,300
-779
-4,733
787
26,752
17,001
43,753
2018E
90.0
102.5
381.0
9.0
11.7
20.0
17.6
4.7
4.0
14.7
0.5
26.4
27.9
0.9
98
66
201
-0.1
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
(INR Million)
2018E
53,935
9,850
-9,392
-16,512
0
37,881
-8,463
29,418
0
0
-8,463
0
0
-827
-4,733
-5,560
23,858
43,754
67,611
5 February 2016
9

Lupin
Corporate profile
Company description
Lupin is amongst the larger pharma companies that is
actively targeting the regulated generics markets.
Historically very strong in the anti-TB segment, it has over
the years built up expertise in fermentation-based
products and segments like cephalosporins, prils and
statins. Lupin is now a fully integrated company, with
manufacturing capabilities in APIs and formulations and a
direct marketing presence in the target markets.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Sep-15
46.6
6.6
36.9
10.0
Jun-15
46.6
6.8
36.8
9.8
Sep-14
46.7
11.0
31.8
10.6
Exhibit 3: Top holders
Holder Name
Genesis Indian Investment Co Ltd
National Westminster Bank Plc
Jhunjhunwala Rakesh Radheshyam
Government of Singapore
NA
% Holding
2.4
1.6
1.5
1.4
0.0
Source: Capitaline
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
Desh Bandhu Gupta
Kamal K Sharma
Nilesh Gupta
Vinita Gupta
M D Gupta
R V Satam
Designation
Chairman
Vice Chairman
Managing Director
Chief Executive Officer
Executive Director
Company Secretary
Exhibit 5: Directors
Name
Dileep C Choksi
R A Shah
Richard Zahn
Jean-Luc Belingard
Name
K U Mada
Ramesh Swaminathan
Vijay Kelkar
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Deloitte Haskins & Sells LLP
Ernst & Young LLP
S D Shenoy
Type
Statutory
Internal
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
FY18
MOSL
forecast
49.7
73.0
90.0
Consensus
forecast
50.1
73.3
87.6
Variation (%)
-1.0
-0.3
2.7
Source: Bloomberg
Source: Capitaline
5 February 2016
10

Lupin
NOTES
5 February 2016
11

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No
No
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12