ICICI Direct's research report on Lupin
Lupin is a multinational pharma company engaged in manufacturing & marketing branded & generic formulations, APIs, biotech products as well as OTC medicines across multiple dosage forms & therapeutic categories. It is the third largest generic player (by prescriptions) in the US with 166 generic products (market leader: 44 products; Top 3: 113 products) along with being sixth largest company in Indian pharmaceutical market • The company was recently going through a rough patch especially on the US generics front due to plant compliance issues besides margins pressure.
Outlook
We retain HOLD rating on the stock amid 1) high price erosion in US ~16%, 2) high inflation in input and freight cost, 3) pending regulatory clearances and 4) time lag in high value complex launches in the US. Valued Lupin at Rs 610 i.e. 20x FY24E EPS of Rs 30.5.
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