Lupin's PAT misses estimates; management confident of FY 25; should you buy, sell or hold?

Lupin share price: Shares on Lupin slipped over 4 per cent in the morning deals on Tuesday (May 7). The selling pressure in the stock came after the pharmaceutical company reported its Q4 results on Monday after market hours.

At around 10:02 a.m., shares of Lupin traded 3.17 per cent or Rs 53.25 higher at Rs 1,626.5 apiece. The market capitalisation of the company at around the same time stood at Rs 74,148.26 crore.

Drug firm Lupin registered a 52 per cent increase in consolidated net profit to Rs 359 crore in the March quarter. The profit after tax (PAT) was estimated at Rs 559 crore by Zee Business Research.

Moreover, the Mumbai-based drug maker reported a net profit of Rs 236 crore in the January-March quarter of the 2022-23 fiscal year. 

Total revenue from operations rose to Rs 4,961 crore in the period under review as compared with Rs 4,430 crore in the same period last fiscal, Lupin said in a regulatory filing.

For the year ended March 31, 2024, the company reported a net profit of Rs 1,914 crore while the same stood at Rs 430 crore in the same quarter of FY23.

Revenue from operations rose to Rs 20,011 crore in the last fiscal as against Rs 16,642 crore in the 2022-23 fiscal.

Management commentary

"We continue to move forward with sustainable and profitable growth and delivered another strong set of numbers in Q4. Our US sales remain healthy driven by inhalation products, and our India formulation business is delivering ahead of the market," Lupin Managing Director Nilesh Gupta said.

While FY24 has been a year of resurgence for the company, the drugmaker looks forward to an even stronger FY25 driven by growth across key geographies and consistent improvement in margins, he added.

Lupin dividend 

The company said its board approved a final dividend of Rs 8 per share of the face value of Rs 2 each for the year ended March 31, 2024.

Should you buy, sell, or hold? 

Citi maintained a 'sell' call on the stock and gave a target of Rs 1,380.

Nomura maintained a 'buy' call on Lupin and gave a target of Rs 1,949.

Macquarie continued with an 'outperform' rating and gave a target of Rs 1,530.

Lupin share price: Past performance 

In a year, shares of Lupin have given a multi-bagger return of 129 per cent against Nifty50's rise of over 22 per cent.

(With inputs from agencies.)

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