1QFY2017 Result Update | Pharmaceutical
August 16, 2016
Lupin
ACCUMULATE
CMP
`1,580
Performance Highlights
Target Price
`1,809
Y/E March (` cr)
1QFY2017 4QFY2016
% chg qoq 1QFY2016
% chg yoy
Investment Period
12 months
Net sales
4,316
4,082
5.7
3,081
40.1
Other income
208
123
69.0
151
38.2
Stock Info
Operating profit
1,185
1,217
(2.6)
750
58.0
Sector
Pharmaceutical
Interest
32
21
50.3
7
355.6
Market Cap (` cr)
71,257
Net profit
882
748
17.9
569
55.1
Net Debt (` cr)
6,737
Source: Company, Angel Research
Beta
0.7
For 1QFY2017, the company posted better than expected numbers. Sales came
52 Week High / Low
2,127 / 1,294
in at `4,316cr V/s `4,150cr expected and V/s `3,081cr in 1QFY2016, a yoy
Avg. Daily Volume
165,927
growth of 40.1%. The sales growth came on the back of the US market which
Face Value (`)
2
posted a yoy revenue growth of 82.3% to `2,188.6cr. On the operating front, the
BSE Sensex
27,860
EBITDA margin came in at 27.4% V/s 29.3% expected and V/s 24.3% in
Nifty
8,592
1QFY2016. Expansion in OPM, low taxation and higher other income aided the
Reuters Code
LUPN.BO
Adj. net profit to come in at `882cr V/s `777cr expected and V/s `569cr in
Bloomberg Code
[email protected]
1QFY2016, ie a yoy growth of 55.1%. We maintain our accumulate rating.
Numbers outperform our expectations: For 1QFY2017, the company posted
Shareholding Pattern (%)
better than expected numbers. Sales came in at `4,316cr V/s `4,150cr expected
Promoters
46.8
and V/s `3,081cr in 1QFY2016, a yoy growth of 40.1%. The sales growth came
MF / Banks / Indian Fls
8.5
on the back of the US market which posted a yoy revenue growth of 82.3% to
FII / NRIs / OCBs
35.6
`2,188.6cr. On the operating front, the EBITDA margin came in at 27.4% V/s
Indian Public / Others
9.1
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
Abs. (%)
3m 1yr 3yr
in 1QFY2017 V/s 7.9% of sales 1QFY2016). The Adj. net profit came in at
Sensex
11.1
(0.5)
46.4
`882cr V/s `777cr expected and V/s `569cr in 1QFY2016, ie a yoy growth of
Lupin
3.4
(10.0)
56.7
55.1%, led by expansion in operating margin, low taxation, and higher other
income.
3-year price chart
Outlook and valuation: We expect Lupin to post a net sales CAGR of 16.7% to
`18,644cr and earnings CAGR of 17.2% to `69.3/share over FY2016-18E.
Currently, the stock is trading at 22.8x its FY2018E earnings, respectively. We
recommend a accumulate rating on the stock.
Key financials (Consolidated)
Y/E March (` cr)
FY2015
FY2016
FY2017E
FY2018E
Net sales
12,600
13,702
15,912
18,644
% chg
13.6
8.7
16.1
17.2
Net profit
2,403
2,271
2,611
3,117
% chg
30.9
(5.5)
15.0
19.4
Source: Company, Angel Research
EPS (`)
53.5
50.5
58.1
69.3
EBITDA margin (%)
27.4
23.7
26.4
26.7
P/E (x)
29.6
31.3
27.2
22.8
RoE (%)
30.4
22.9
21.4
20.9
RoCE (%)
34.3
19.6
19.3
24.4
P/BV (x)
8.0
6.5
5.3
4.3
Sarabjit Kour Nangra
EV/sales (x)
5.6
5.6
4.5
3.7
+91 22 3935 7600 Ext: 6806
EV/EBITDA (x)
20.3
23.7
16.9
13.7
[email protected]
Source: Company, Angel Research; Note: CMP as of August 11, 2016
Please refer to important disclosures at the end of this report
1
Lupin | 1QFY2017 Result Update
Exhibit 1: 1QFY2017 - Consolidated performance
Y/E March (` cr)
1QFY2017
4QFY2016
% chg (qoq)
1QFY2016
% chg (yoy) FY2016 FY2015
% chg (yoy)
Net sales
4,316
4,082
5.7
3,081
40.1
13,926
12,600
10.5
Other income
208
123
69.0
151
38.2
788
409
92.6
Total income
4,524
4,206
7.6
3,232
40.0
14,714
13,009
13.1
Gross profit
3,044
2,981
2.1
2,092
9,419
8,443
11.6
Gross margin
70.5
73.0
67.9
67.6
67.0
Operating profit
1,184.5
1,216.6
(2.6)
750
58.0
3,154
3,450.0
(8.6)
OPM (%)
27.4
29.8
24.3
22.6
27.4
Interest
32
21
50.3
7
355.6
54
10
437.2
Dep. & amortization
203
149
36.3
101
100.1
522
435
19.9
PBT
1,158
1,170
(1.0)
792
46.2
3,366
3,414
(1.4)
Provision for taxation
273
419
(34.8)
226
20.9
1,014
970
4.5
Reported net profit
885
751
17.8
566
56.3
2,352
2,444
(3.7)
Less : exceptional items
-
-
-
-
-
MI & share in associates
(1)
(3)
(81.6)
2
(136.1)
3
41
(92.6)
PAT after exceptional items
882
748
17.9
569
55.1
2,349
2,403
(2.2)
EPS (`)
19.7
16.7
12.7
52.4
53.7
Source: Company, Angel Research
Exhibit 2: 1QFY2017 - Actual Vs Angel estimates
` cr
Actual
Estimates
Variation
Net Sales
4,316
4,150
4.0
Other Income
208
100
108.5
Operating Profit
1,185
1,217
(2.7)
Deprecation
203
145
40.2
Tax
273
368
(25.7)
Net Profit
882
776
13.6
Source: Company, Angel Research
Revenue grows 40.1% yoy: Sales for the quarter came in at `4,316cr V/s
`4,150cr expected and V/s `3,081cr in 1QFY2016, ie a yoy growth of 40.1%. The
growth came on the back of the US market (`2,188.6cr) which posted a yoy
growth of 82.3%. Among other geographies, India (`931.3cr; contributing ~22%
of sales) grew 5.2% yoy, APAC (`541.6cr; contributing 12% of the company’s
global sales) grew 32.9% yoy/19.5% qoq, EMEA (`219.4cr; contributing 5% of the
company’s global sales) grew 20.6% yoy and declined 10.5% qoq, LATAM
(`108.9cr) grew 76.8% yoy, ROW (`36.9cr) grew 117.1% yoy, Japan grew by
11.1% yoy (15.8% qoq) to JPY6,868mn, South Africa grew by 31.9% yoy (-20.4
qoq) to ZAR205mn, Germany grew by 88.2% yoy (-12.3% qoq) to EUR6.4mn and
Philippines grew by 65.5% yoy (10.6% qoq) to PHP487mn.
Lupin remains the fourth largest generic player in the South African market.
API sales (`286.9cr) posted a dip of 12.4% yoy.
The US business grew 78.9% yoy to US$322mn. The company completed the
acquisition of Gavis in March 2016, which added ~US$25mn to the top-line for
1QFY2017. The company launched 3 products in the US during the period in
addition to the 123 products it has in the market. Lupin is the market leader in 46
products marketed in the US generics market and is amongst the top 3 by market
share in 80 products.
August 16, 2016
2
Lupin | 1QFY2017 Result Update
Exhibit 3: Advanced markets - Sales trend
3,000
2,531
2,408
2,500
1,880
2,000
1,599
1,594
1,500
1,000
500
0
1QFY2016
2QFY2016
3QFY2016
4QFY2016
1QFY2017
Source: Company, Angel Research
Exhibit 4: Domestic Formulation Market
1000
931
885
874
871
900
762
800
700
600
500
400
300
200
100
0
1QFY2016
2QFY2016
3QFY2016
4QFY2016
1QFY2017
Source: Company
OPM at 27.4%: On the operating front, the EBITDA margin came in at 27.4% V/s
29.3% expected and V/s 24.1% in 1QFY2016. The expansion in the margin is
lower than expected owing to 45.2% yoy growth in employee cost and 104.8% yoy
rise in R&D expenses (11.6% of sales in 1QFY2017 V/s 7.9% of sales in
1QFY2016).
August 16, 2016
3
Lupin | 1QFY2017 Result Update
Exhibit 5: OPM trend
33.0
31.2
31.0
29.0
27.4
27.0
24.2
25.0
23.0
20.0
20.2
21.0
19.0
17.0
15.0
1QFY2016
2QFY2016
3QFY2016
4QFY2016
1QFY2017
Source: Company, Angel Research
Net profit growth lower than our estimate: Expansion in OPM along with low
taxation and higher other income aided the Adj. net profit to grow by 55.1% yoy to
`882cr (V/s `777cr expected).
Exhibit 6: Net profit trends
1000
882.0
900
807
800
700
600
525
530
500
400
400
300
200
100
0
1QFY2016
2QFY2016
3QFY2016
4QFY2016
1QFY2017
Source: Company, Angel Research
Conference call takeaways
Sales in constant currency grew 11% yoy in Japan. Revenue growth came in at
31% yoy in Rupee terms due to currency tailwinds.
The company expects base business in Japan to grow at ~10-15% yoy in CC.
FY2018 revenue aspiration has been brought down to US$3.5bn (US$2.1bn
in FY2016) from US$5bn. Net profit margin for FY2018 to be 20%.
Company expects to deliver double-digit growth over the remainder of
FY2017.
R&D as % of sales to be at 12-15% in FY2017. Biosimilars expense would be
~12-14% of total R&D cost. Around 1/6th of the expense would be towards the
NCE portfolio.
Tax rate guided to be between 28-30% of PBT.
August 16, 2016
4
Lupin | 1QFY2017 Result Update
Recommendation rationale
US market - the key driver: The high-margin branded generic business has
been the key differentiator for Lupin in the Indian pharmaceuticals space. On
the generic turf, Lupin is currently the fifth largest generic player in the US,
with 5.3% market share in prescription. Lupin is now the market leader in 44
products marketed in the US generics market and is amongst the top 3 by
market share in 79 products. Currently, the company’s cumulative filings stand
at 343, of which 180 have been approved, with 35 FTFs valued at more than
US$13bn. Lupin plans to launch 25-30 products in the US in FY2017. We
expect the region to post a CAGR of 22.9% during FY2016-18E on back of
new product launches.
Domestic formulations on a strong footing: Lupin continues to make strides in
the Indian market. Currently, Lupin ranks No 3, and is the fastest growing
company among the top five companies in the domestic formulation space,
registering a strong CAGR of 20.0% over the last few years. Six of Lupin's
products are among the top 300 brands in the country. Lupin has a strong
field force of ~6,000MRs (as of FY2016). We expect the domestic formulation
market to grow at a CAGR of 15.0% over FY2016-18E.
First-mover advantage in Japan: Lupin figures among the few Indian
companies with a formidable presence in Japan, the world’s second largest
pharma market (Lupin ranked as the 8th largest as per IMS MAT March 2014).
The Management believes there will be patent expiries (US$14-16bn) in the
next two years in the Japanese market, which along with increased generic
penetration would drive growth in the market. The Management expects
improvement in growth in the next 3-4 years. On a conservative basis, we
expect the market to post a CAGR of 10.0% over FY2016-18E.
August 16, 2016
5
Lupin | 1QFY2017 Result Update
Valuation
We expect Lupin to post a net sales CAGR of 16.7% to `18,644cr and earnings
CAGR of 17.2% to `69.3/share over FY2016-18E. Currently, the stock is trading
at
27.2x and
22.8x its FY2017E and FY2018E earnings, respectively. We
recommend a accumulate on the stock.
Exhibit 7: Key Assumptions
FY2017E
FY2018E
Sales growth (%)
16.1
17.2
Domestic growth (%)
14.0
16.0
Exports growth (%)
17.8
17.5
Operating margins (%)
26.4
26.7
R&D Exp ( % of sales)
12.0
12.0
Capex (` cr)
1000
1000
Source: Company, Angel Research
Exhibit 8: One-year forward PE
3,000
2,500
2,000
1,500
1,000
500
-
20x
25x
30x
35x
Source: Company, Angel Research
August 16, 2016
6
Lupin | 1QFY2017 Result Update
Exhibit 9: Recommendation summary
Company
Reco
CMP Tgt. price Upside
FY2018E
FY16-18E
FY2018E
(`)
(`)
(%) PE (x) EV/Sales (x) EV/EBITDA (x) CAGR in EPS (%) RoCE (%) RoE (%)
Alembic Pharma
Neutral
639
-
-
21.0
2.8
13.2
(10.8)
27.5
25.3
Aurobindo Pharma Buy
750
877
16.9
15.9
2.6
11.0
18.1
22.5
26.1
Cadila Healthcare
Accumulate
372
400
7.5
18.6
2.8
12.7
15.8
24.3
26.6
Cipla
Neutral
523
-
-
19.2
2.4
13.3
20.4
13.5
15.2
Dr Reddy's
Neutral
3,013
-
-
19.1
2.8
11.2
6.9
18.1
17.1
Dishman Pharma
Neutral
165
-
-
15.8
1.7
8.0
(1.1)
9.6
10.2
GSK Pharma*
Neutral
3,109
-
-
52.3
6.7
35.8
15.9
35.8
31.8
Indoco Remedies
Sell
318
225
(29.2)
20.4
2.4
13.0
31.5
19.1
19.2
Ipca labs
Buy
523
613
17.2
26.6
1.8
12.0
17.9
11.8
14.9
Lupin
Accumulate
1,580
1,809
14.5
22.8
3.7
14.0
17.2
24.4
20.9
Sanofi India
Neutral
4,348
-
-
25.7
3.2
18.5
21.2
24.9
28.4
Sun Pharma
Accumulate
809
944
12.6
24.7
5.0
16.0
22.0
33.1
18.9
Source: Company, Angel Research; Note: * December year ending
August 16, 2016
7
Lupin | 1QFY2017 Result Update
Company Background
Lupin, established in 1968, is primarily engaged in the manufacture and global
distribution of active pharmaceutical ingredients (APIs) and finished dosages. Over
the years, the company forayed into the US markets through a differentiated export
strategy of tapping branded generics and consequently gaining a large share of
the US prescription market. Further, to expand its footprint in the global markets,
Lupin has prudently adopted the inorganic growth route. In line with this, over the
last two years, the company made small acquisitions across geographies,
prominent among these being the acquisition of Kyowa in the growing Japanese
market. In the US, the company has acquired privately held Gavis Pharmaceuticals
LLC and Novel Laboratories Inc. The acquisitions enhance Lupin’s scale in the US
generic market and also broadens its pipeline in dermatology, controlled
substance products and other high-value and niche generics.
August 16, 2016
8
Lupin | 1QFY2017 Result Update
Profit & Loss Statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
Gross sales
9,524
11,167
12,684
13,797
16,008
18,757
Less: Excise duty
62
80
84
96
96
113
Net sales
9,462
11,087
12,600
13,702
15,912
18,644
Other operating income
180
200
170
507
200
200
Total operating income
9,641
11,287
12,770
14,208
16,112
18,844
% chg
36.1
17.1
13.1
11.3
13.4
17.0
Total expenditure
7,371
8,284
9,150
10,455
11,718
13,667
Net raw materials
3,548
3,817
4,157
4,309
5,092
5,864
Other mfg costs
757
847
963
1,047
1,216
1,425
Personnel
1,249
1,465
1,747
2,108
2,069
2,868
Other
1,818
2,155
2,283
2,580
3,342
3,511
EBITDA
2,090
2,803
3,449
3,247
4,194
4,977
% chg
58.2
34.1
23.1
(5.9)
29.2
18.7
(% of Net Sales)
22.1
25.3
27.4
23.7
26.4
26.7
Dep. & Amortization
332
261
435
464
933
1,013
EBIT
1,758
2,542
3,015
2,783
3,261
3,964
% chg
60.7
44.6
18.6
(7.7)
17.2
21.5
(% of Net Sales)
18.6
22.9
23.9
20.3
20.5
21.3
Interest & other charges
41
27
10
45
10
10
Other Income
28
116
240
188
188
188
(% of PBT)
1
4
7
5
5
4
Share in profit of asso.
-
Recurring PBT
1,925
2,832
3,415
3,433
3,639
4,342
% chg
60.9
47.1
20.6
0.5
6.0
19.3
Extraordinary exp./(Inc.)
-
-
-
-
-
-
PBT (reported)
1,925
2,832
3,415
3,433
3,639
4,342
Tax
584
962
970
1,154
1,019
1,216
(% of PBT)
30.4
34.0
28.4
33.6
28.0
28.0
PAT (reported)
1,340
1,870
2,444
2,279
2,620
3,126
Add: Share of earnings of asso.
-
-
-
-
-
-
Less: Minority interest (MI)
26
33
41
9
9
9
Prior period items
-
-
-
-
-
-
PAT after MI (reported)
1,314
1,836
2,403
2,271
2,611
3,117
ADJ. PAT
1,314
1,836
2,403
2,271
2,611
3,117
% chg
51.5
39.7
30.9
(5.5)
15.0
19.4
(% of Net Sales)
13.9
16.6
19.1
16.6
16.4
16.7
Basic EPS (`)
29.4
41.0
53.5
50.5
58.1
69.3
Fully Diluted EPS (`)
29.4
41.0
53.5
50.5
58.1
69.3
% chg
51.0
39.5
30.5
(5.5)
15.0
19.4
August 16, 2016
9
Lupin | 1QFY2017 Result Update
Balance Sheet (Consolidated)
Y/E March
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
SOURCES OF FUNDS
Equity share capital
90
90
90
90
90
90
Reserves & surplus
5,115
6,842
8,784
10,894
13,337
16,286
Shareholders funds
5,204
6,932
8,874
10,984
13,427
16,376
Minority interest
59
67
24
32
41
50
Total loans
1,164
553
471
7,119
1,000
500
Other Long-Term Liabilities
50
46
74
75
76
77
Long-Term Provisions
112
132
132
380
380
380
Deferred tax liability
163
178
118
124
124
124
Total liabilities
6,754
7,908
9,693
18,715
15,049
17,507
APPLICATION OF FUNDS
Gross block
4,114
4,564
5,355
11,160
12,160
13,160
Less: Acc. depreciation
1,684
1,928
2,363
2,827
3,759
4,772
Net block
2,430
2,635
2,992
8,334
8,401
8,388
Capital work-in-progress
311
304
304
304
304
304
Goodwill
570
720
1,648
2,964
2,964
2,964
Investments
2
178
1,658
8
8
8
Long-Term Loans and Adv.
387
373
275
970
1,126
1,320
Current assets
5,143
5,924
6,176
9,777
6,489
9,495
Cash
435
798
1,306
838
338
2,288
Loans & advances
340
302
671
737
847
993
Other
3,154
4,825
4,199
8,202
5,303
6,214
Current liabilities
2,089
2,227
3,360
3,642
4,243
4,972
Net current assets
3,054
3,697
2,816
6,135
2,245
4,523
Mis. Exp. not written off
-
-
-
-
-
-
Total assets
6,754
7,908
9,693
18,715
15,049
17,507
August 16, 2016
10
Lupin | 1QFY2017 Result Update
Cash Flow Statement (Consolidated)
Y/E March (` cr)
FY2013 FY2014 FY2015 FY2016 FY2017E FY2018E
Profit before tax
1,925
2,832
3,415
3,433
3,639
4,342
Depreciation
332
261
435
464
933
1,013
(Inc)/Dec in working capital
620
(1,481)
1,487
(4,482)
3,233
(521)
Direct taxes paid
(584)
(962)
(970)
(1,154)
(1,019)
(1,216)
Cash Flow from Operations
2,293
649
4,367
(1,739)
6,786
3,618
(Inc.)/Dec.in Fixed Assets
(353)
(443)
(791)
(5,805)
(1,000)
(1,000)
(Inc.)/Dec. in Investments
-
-
-
-
-
-
Cash Flow from Investing
(353)
(443)
(791)
(5,805)
(1,000)
(1,000)
Issue of equity
-
-
-
-
-
-
Inc./(Dec.) in loans
(476)
(611)
(82)
6,648
(6,119)
(500)
Dividend Paid (Incl. Tax)
(209)
(157)
(168)
(168)
(168)
(168)
Others
499
(795)
(2,816)
597
1
-
Cash Flow from Financing
(186)
(1,564)
(3,067)
7,077
(6,287)
(668)
Inc./(Dec.) in Cash
1,753
(1,358)
509
(468)
(500)
1,950
Opening Cash balances
402
435
798
1,306
838
338
Closing Cash balances
435
798
1,306
838
338
2,288
August 16, 2016
11
Lupin | 1QFY2017 Result Update
Key Ratios
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
Valuation Ratio (x)
P/E (on FDEPS)
53.8
38.6
29.6
31.3
27.2
22.8
P/CEPS
43.0
33.8
25.0
26.0
20.0
17.2
P/BV
13.6
10.2
8.0
6.5
5.3
4.3
Dividend yield (%)
0.3
0.4
0.5
0.5
0.5
0.5
EV/Sales
7.5
6.4
5.6
5.6
4.5
3.7
EV/EBITDA
34.1
25.1
20.3
23.7
16.9
13.7
EV / Total Assets
10.5
8.9
7.2
4.1
4.7
3.9
Per Share Data (`)
EPS (Basic)
29.4
41.0
53.5
50.5
58.1
69.3
EPS (fully diluted)
29.4
41.0
53.5
50.5
58.1
69.3
Cash EPS
36.8
46.8
63.1
60.8
78.8
91.9
DPS
4.0
6.0
8.0
8.0
8.0
8.0
Book Value
116.3
154.6
197.4
244.4
298.7
364.3
Dupont Analysis
EBIT margin
18.6
22.9
23.9
20.3
20.5
21.3
Tax retention ratio
69.6
66.0
71.6
66.4
72.0
72.0
Asset turnover (x)
1.6
1.7
1.6
1.1
1.0
1.3
ROIC (Post-tax)
20.9
25.4
28.2
14.6
14.6
19.3
Cost of Debt (Post Tax)
2.0
2.0
1.4
0.8
0.2
1.0
Leverage (x)
0.0
0.0
0.0
0.0
0.2
0.0
Operating ROE
20.9
25.4
28.2
14.6
17.2
19.6
Returns (%)
ROCE (Pre-tax)
27.5
34.7
34.3
19.6
19.3
24.4
Angel ROIC (Pre-tax)
35.0
44.1
48.2
26.4
25.0
33.9
ROE
28.5
30.3
30.4
22.9
21.4
20.9
Turnover ratios (x)
Asset Turnover (Gross Block)
2.5
2.6
2.6
1.7
1.4
1.5
Inventory / Sales (days)
70
66
62
74
66
56
Receivables (days)
75
75
66
78
71
59
Payables (days)
72
84
78
86
86
86
WC cycle (ex-cash) (days)
88
89
63
87
82
40
Solvency ratios (x)
Net debt to equity
0.1
(0.0)
(0.1)
0.6
0.0
(0.1)
Net debt to EBITDA
0.3
(0.1)
(0.2)
1.9
0.2
(0.4)
Interest Coverage
42.9
95.4
307.3
62.4
326.1
396.4
August 16, 2016
12
Lupin | 1QFY2017 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement
Lupin
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
August 16, 2016
13