Lupin Ltd., incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 42084.09 Crore) operating in Pharmaceuticals sector. Lupin Ltd. key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Other Operating Revenue and Other Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4164.14 Crore, down -3.11 % from last quarter Total Income of Rs 4298.02 Crore and up 7.88 % from last year same quarter Total Income of Rs 3859.96 Crore. Company reported net profit after tax of Rs -2094.89 Crore in latest quarter.
Investment Rationale
Lupin’s Q2FY22 performance has disappointed again on the margins front, although revenues were in-line with our estimates. Consolidated revenues grew 6.7% to Rs40.9bn while EBITDA margin dropped 160bps YoY to 13.6% (I-Sec: 16.4%). Reported net loss stood at Rs21.0bn due to one-offs (US$ 253mn of settlement of Glumetza class action and Rs7.1bn of impairment for Solosec IP). US revenue grew 7% QoQ to US$184mn, higher than our estimates of US$180mn. The brokerage believes US sales will gradually improve, however multiple ongoing USFDA issues would weigh on new approvals and keep the growth in check in the near term. Hence, the brokerage continues to believe that growth outlook remains uncertain while EBITDA margin to remain subdued despite focus on cost control initiatives. It retains REDUCE with a revised target price of Rs804/share.
Promoter/FII Holdings
Promoters held 46.83 per cent stake in the company as of 30-Sep-2021, while FIIs owned 15.66 per cent, DIIs 24.46 per cent.
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