Sharekhan’s research report on Lupin
Q3FY2023 performance lagged ours and the street’s expectations, led by slower growth in the US and India markets. Adjusted PAT declined sharply by 75% y-o-y to Rs. 137 crore due to lower other income and higher interest costs and taxes. Product launches (including that of Suprep) proved ineffective in driving US revenue growth, as anticipated, due to which EBITDA margins are lagging estimates.
Stock trades at a rich valuation of 34.9x/20.8x its FY2024/25E earnings. Given a weaker outlook, we downgrade our Buy rating on the stock to Reduce with a revised PT of Rs. 660
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Lupin - 09 -03 - 2023 - khan