Sharekhan's research report on Lupin
New launches with high market opportunities (such as Metformin Hydrochloride extended release tablets, Sevelamer Carbonate Tablets, Tacrolimus) and faster than expected ramp up in ProAir, would drive US sales. Indian Pharmaceutical markets (IPM) has staged a strong revival growing by ~6% y-o-y in Q3FY2021 as compared to a 3% decline in H1FY2021, driven by Chronics. This is likely to benefit Lupin’s domestic business. Given improved growth traction in the US & India business and cost rationalisation efforts is likely to result in a strong 37% earnings CAGR over FY2021-FY2023.
Outlook
We upgrade Lupin to Buy from Hold earlier with revised price target of Rs. 1,350.
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