Buy Lupin; target of Rs 1350: Sharekhan

Trading Calls - Equity F&O

Sharekhan is bullish on Lupin has recommended buy rating on the stock with a target price of Rs 1350 in its research report dated January 25, 2021.

Broker Research

February 01, 2021 / 06:38 PM IST

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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.

For all recommendations report, click here

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