Lupin Q4 Results Review - Niche Product Drives Earnings Growth: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Lupin Ltd. delivered in-line operational performance in Q4 FY24. Lupin ended FY24 on a strong note, with Rs 198 billion in sales (up 19% YoY), Ebitda margin of 18% (up 750 basis points YoY) and profit after tax of Rs 19 billion (versus Rs 4 billion YoY). Lupin continues to implement efforts toward building a complex product pipeline in inhalation, injectables and ophthalmics. We raise our earnings estimates by 6% each for FY25/FY26, factoring in-limited competition product launches in the US generics segment, industry outperformance in the domestic formulationsegment anda scale-up in the diagnostic business..We value Lupin at 25 times 12 months forward earnings to arrive at a target price of Rs 1,550. Lupin remains in good stead to deliver a 19% earnings compound annual growth rate over FY24-26 on the back of an 11% sales CAGR in the U.S. generics/domestic formulation segments and 160 bp margin expansion. However, we maintain our Neutral rating on the stock as the valuation at 32 times FY25E earnings per share of Rs 51 and 27 times FY26E EPS of Rs 59 adequately factors in the upside..Click on the attachment to read the full report:.Lupin Q4 Results: Net Profit up 52%, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Lupin Q4 Results Review - Niche Product Drives Earnings Growth: Motilal Oswal

Work-in-progress to further build product pipeline in key markets

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