Shares of Lupin surged more than 5% to hit their 52-week high on Tuesday after the brokerage house Nomura suggested a bullish outlook for the drug maker's future performance.
The brokerage recommended a 'buy' call while increasing the target price to ₹1,593 from ₹1,290 per share earlier. The target price is 17.59% higher compared to Monday's closing price of ₹1,312.65 per share.
Nomura is bullish on the company's performance, citing improvement in margins over the past three to four years.
The products launch in the United States and expansion in India, emerging markets (EMs), and Europe to drive margin improvement, the brokerage said in its note.
Additionally, a lineup of upcoming products in the US could help drive growth on the current base.
The company has raised the earnings per share estimate for fiscal years 2024 by 8% in 2025, and 2026 by 2%, and 2026 by 14%. The percentage increases indicate the magnitude of the anticipated growth.
The global brokerage highlighted that Lupin's stability in the domestic market, driven by a reliable in-licensed portfolio and improved MR productivity, will positively impact margins.
Additionally, the Nomura note also highlighted the undervaluation of Lupin's formulations business, which has expanded significantly beyond India and the US in recent years.
Lupin is a major player in the development and commercialisation of a diverse array of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs).
Its presence extends across more than 100 markets, encompassing the US, India, South Africa, and various regions such as Asia Pacific (APAC), Latin America (LATAM), Europe and the Middle East.
Shares of Lupin were trading 5.51% higher at ₹1,385 apiece on BSE at 11:54 AM.
(Edited by : Ajay Vaishnav)
First Published: Jan 2, 2024 12:45 PM IST
