Sharekhan has given Buy recommendation for Lupin with a target price of Rs. 1400 in its research report issued on Aug 11, 2021
Sharekhan’s research report on Lupin
Lupin’s Q1FY22 performance marginally missed estimates on the operating front and also reflected a NCE licensing milestone income of $50 million. Going ahead, Lupin sees strong traction for its India business and expects growth to be in the high-teens in FY2022, which would be driven by strong growth in the base business, especially chronic therapies. The US business is expected to be impacted by the price erosion in the near term while 2HFy2022 is expected to see a marked improvement driven by ramp up in Albuterol and Brovana. High potential / limited competition launches in FY23 provide further visibility for growth.
Given the robust growth outlook, and improving return ratios, we retain Buy on Lupin with an unchanged PT of Rs. 1,400.