Lupin hits a 52-week high after Nomura's bullish stance; brokerage sees 21% upside

Shares of Lupin soared in morning deals on BSE on Tuesday (January 2, 2023) as they snapped a two-day losing streak to clock a 52-week high of Rs 1,381.5 apiece. Dalal Street showed buying interest in the stock after brokerage firm Nomura upgraded its target price for the pharma firm. 

At around 9:55 a.m., shares of Lupin traded up by 4.51 per cent or Rs 59.2 at Rs 1371.85 apiece. The market capitalisation of the pharmaceutical company stood at Rs 62,457.14 crore at the same time. 

Nomura continued with a 'buy' call on Lupin and increased the target price from Rs 1,290 to Rs 1,593. The brokerage sees over 21 per cent upside in the stock from Monday's closing given a strong US pipeline, which will drive growth on the existing base.

Further, Nomura expects the margins to improve in the coming three to four years. It also expects strong growth in Lupin's domestic business as well as in Europe.

The growth shall be supported by business expansion and being in the chronic segment, Nomura said about Lupin. The brokerage also raised the Earnings Per Share (EPS) estimates by two to 4 per cent. 

Sharekhan is also bullish on the stock on the back of the company strengthening its respiratory portfolio products as a tool to mitigate price erosion pressure in the base portfolio.

"The company intends to sustain this sales momentum, driven by key product launches such as gSpiriva, Diazepam gel, and pick-ups in complex respiratory products," the brokerage said.

Nomura expects the company’s margin profile to increase in line with peers and expects earnings before interest, tax, depreciation, and amortisation (EBITDA) margins to grow 21 per cent by FY2026. 

Further, Sharekhan has maintained a 'buy' call on the stock for a target price of Rs 1,500 apiece. 

Lupin share price: Past performance

Shares of Lupin have gained over 86 per cent in a year as compared to Nifty 50's rise of nearly 19 per cent during the same period.  

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.