My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

Lupin Ltd Research Report - 16th Aug 2016

Pharmaceutical | Published on Aug 16th 2016

IT

For 1QFY2017, the company posted better than expected numbers. Sales came in at Rs4,316cr V/s Rs4,150cr expected and V/s Rs3,081cr in 1QFY2016, a yoy growth of 40.1%. The sales growth came on the back of the US market which posted a yoy revenue growth of 82.3% to Rs2,188.6cr. On the operating front, the EBITDA margin came in at 27.4% V/s 29.3% expected and V/s 24.3% in 1QFY2016. Expansion in OPM, low taxation and higher other income aided the Adj. net profit to come in at Rs882cr V/s Rs777cr expected and V/s Rs569cr in 1QFY2016, ie a yoy growth of 55.1%. We maintain our accumulate rating. Numbers outperform our expectations: For 1QFY2017, the company posted better than expected numbers. Sales came in at Rs4,316cr V/s Rs4,150cr expected and V/s Rs3,081cr in 1QFY2016, a yoy growth of 40.1%. The sales growth came on the back of the US market which posted a yoy revenue growth of 82.3% to Rs2,188.6cr. On the operating front, the EBITDA margin came in at 27.4% V/s 29.3% expected and V/s 24.3% in 1QFY2016. Although the margin expanded on a yoy basis, it underperformed our expectations owing to a 45.2% yoy increase in employee cost and an 104.8% rise in R&D expenses (11.6% of sales in 1QFY2017 V/s 7.9% of sales 1QFY2016). The Adj. net profit came in at Rs882cr V/s Rs777cr expected and V/s Rs569cr in 1QFY2016, ie a yoy growth of 55.1%, led by expansion in operating margin, low taxation, and higher other income. Outlook and valuation: We expect Lupin to post a net sales CAGR of 16.7% to Rs18,644cr and earnings CAGR of 17.2% to Rs69.3/share over FY2016–18E. Currently, the stock is trading at 22.8x its FY2018E earnings, respectively. We recommend a accumulate rating on the stock.

Download Full Report

Accumulate

CMP 1,580
Target Price 1,809
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)67,190.56
MCAP NSE (Rs in Cr)67,208.61
P/E (x)23.81
EPS (Rs.)62.52
BV (Rs.)295.11
Div Yield (%)0.50
FV (Rs.)2.00
P/BV (x)5.38
EV/Sales (x)5.21
EV/EBITDA (x)22.58

Shareholding Pattern (%)

Promoter47.0
Foreign35.0
Public & Others10.0
Institution7.0
Corporate1.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo