Lupin Ltd., incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 44961.34 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 4298.02 Crore, up 11.89 % from last quarter Total Income of Rs 3841.32 Crore and up 20.35 % from last year same quarter Total Income of Rs 3571.14 Crore. Company reported net profit after tax of Rs 548.00 Crore in latest quarter.
Investment Rationale
Q1FY22 saw Prestige Estates Projects’ (PEPL) gross residential bookings rising 59% YoY in value terms to Rs7.3bn on the back of 75% of sales coming from ongoing and completed projects in spite of the second Covid wave. With a strong pipeline of launches of 12-15msf in H2FY22, this momentum in residential sales is expected to sustain. The company is gearing up to launch three new projects in Mumbai across 6msf in Mulund, Byculla and Bandra and the success of these launches in a new market for PEPL is key to the company achieving its vision of Rs100bn of annual sales bookings by FY24-25E. The company has also embarked on a fresh round of capex of Rs35-40bn over FY22-25E to regrow its rental portfolio. The brokerage retains ADD rating with a revised DCF based target price of Rs382/share (earlier Rs317) factoring in new Mumbai launches and rolling forward valuation to Mar’22 NAV. Key risks to the call are a slowdown in residential demand and continued weakness in office leasing.
Promoter/FII Holdings
Promoters held 46.8 per cent stake in the company as of June 30, 2021, while FIIs held 18.7 per cent, DIIs 21.7 per cent and public and others 12.8 per cent.
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