Lupin Stock Skyrockets: Analysts Optimistic on Booming Growth, but Caution on Potential Valuation Ceiling | Market News Insight

Shares of Lupin surged 2.75% to Rs 2,047.50 on the BSE during Thursday’s intraday trading, reflecting a 7.36% gain over the past two sessions. This rise followed impressive Q1FY25 earnings released on Tuesday, which earned Lupin commendations from brokerages.

Nuvama Institutional Equities upgraded Lupin from ‘Hold’ to ‘Buy’, citing its robust growth outlook in both US and domestic markets. Notably, Lupin’s US launches and its absence of Revlimid contribute to continued earnings surprises.

Lupin’s Q1FY25 revenues and profits beat expectations, driven by strong performances of drugs like Spiriva and Myrbetriq, despite competition impacting Albuterol. The company’s quarterly profits soared 77.2% Y-o-Y to Rs 801 crore, with revenue from operations growing 16.2% Y-o-Y to Rs 5,514.3 crore. Ebitda also saw a 48.9% Y-o-Y increase.

Looking ahead, Lupin’s growth is supported by upcoming drug launches such as Slynd, Doxil, and Liraglutide, along with established products Spiriva and Mirabegron. Analysts expect a 22-23% margin and positive projections in Mexico and the Philippines.

While brokerages agree on Lupin’s optimistic growth trajectory, they diverge on valuation perspectives. Nomura, Nuvama, and Jefferies have varying price targets, reflecting differing views on stock value—a ‘Buy’ rating from Nomura and Nuvama, and a ‘Hold’ from Jefferies. Conversely, HDFC Securities and ICICI Securities recommend caution, labeling the valuations as expensive.

At 11:42 AM, Lupin traded 2.42% higher at Rs 2,041 per share, contrasting with a 0.39% dip in the BSE Sensex.

Original Story https://www.business-standard.com/markets/news/lupin-stock-soars-analysts-bullish-on-growth-but-valuation-may-cap-upside-124080800500_1.html
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