Shares of pharma major Lupin zoomed nearly 9 per cent today after the drugmaker reported a consolidated net profit of Rs 130 crore in Q2 against a net loss of Rs 2,098 crore in the July-September period of the previous fiscal. Japanese brokerage Nomura expects a 19.58 per cent rise in the Lupin stock post Q2 earnings. ┬аIt has assigned a buy call with a target price of Rs 863 against the previous close. Lupin share price gained 8.62 per cent to Rs 753.90 against the previous close of Rs 694.05 on BSE. ┬а
┬аLupin stock has gained after three days of consecutive fall. The stock opened with a gain of 2.87% at Rs 714 on BSE. Lupin is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has lost 23.03 per cent in a year and fallen 23.78 percent in 2022.┬а
Market cap of Lupin rose to Rs 33,010 crore on BSE. Total 1.54 lakh shares of the firm changed hands amounting to a turnover of Rs 11.39 crore on BSE.
The stock hit a 52-week high of Rs 972.50 on December 14, 2021 and a 52-week low of Rs 583.05 on May 25, 2022.
Revenue rose 1.32 per cent to Rs 4,145 crore in Q2 compared to Rs 4,091 crore in the year-ago period. The company said it paid Rs 1,878 crore towards litigation and settlement related expenses last year with respect to antitrust class action filed in the US in connection with the drug Glumetza.
“We have performed in line with our expectations during the quarter, and are on the path of steady growth in sales and profitability. Our sales growth sequentially was robust as our US business bounced back. Our India business delivered continued growth in line with the market, excluding the impact of loss of exclusivity and certain sales in the diabetes and cardiovascular therapy area,” Lupin Managing Director Nilesh Gupta said.
Nomura is bullish on the stock after Q2 earnings beat estimates. тАЬQ2 sales and EBITDA came in 2.8%/11.7% above estimates said Nomura. Net earnings came in 12% below forecasts on higher interest income expense, lower other income and higher depreciation. Management expects EBITDA margin to reach 18% by end of FY23,тАЭ said the brokerage.
Financial services firm Motilal Oswal has assigned a neutral rating to the stock post Q2 earnings.
The brokerage said Lupin’s 2QFY23 revenues rose marginally 1% YoY to Rs 4,100 crore above its estimate of Rs 4000 crore. ┬аHowever, US sales declined 7% YoY to Rs 1,300 crore ┬а(down 14% in constant currency terms to $159 m; 33% of sales) in the quarter. US sales grew 31% sequentially from $121million in 1QFY23.
Global financial services major Macquarie has assigned an ‘outperform’ call on Lupin with a target price of Rs 790. ┬аThe target amounts to 14% upside against the previous close.┬а
According to the brokerage house, the company missed its profitability due to absence of cost savings. EBITDA and profit numbers came 14 per cent and 45 per cent below the estimates, respectively.
Meanwhile, Sensex fell 400 points to 60,633 and Nifty fell 120 points to 18,037 in late morning deals.
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