Lupin eyes Rs 2,500-crore market with its latest launch in US; what Anil Singhvi recommends
Zee Business Managing Editor Anil Singhvi said he remained upbeat on Lupin shares on account of the companys positive business outlook.
Lupin shares hit a 52-week high on Monday after the Mumbai-based drug maker launched Darunavir tablets in the US. The stock of Mumbai-based Lupin gained by as much as Rs 13.2 or 1.6 per cent to Rs 830.3 apiece on BSE, surpassing its existing 52-week high of Rs 820.4 touched last week.
EDITOR'S TAKE | What Anil Singhvi recommends on Lupin shares
Zee Business Managing Editor Anil Singhvi said he remained upbeat on Lupin shares on account of the company's positive business outlook.
He recommends buying Lupin futures for targets as high as Rs 838, Rs 846 and Rs 855 with a stop loss at Rs 810.
The market wizard highlighted that the market size for the drug, Darunavir tablets, is estimated at Rs 2,500 crore.
He also said the company is scheduled to launch another drug which may trigger a re-rating for the stock.
What do the Darunavir tablets do?
Darunavir tablets belong to a class of medications called protease inhibitors. The drug works by decreasing the amount of HIV in the blood. Although it does not cure HIV, it may decrease the chance of developing acquired immunodeficiency syndrome (AIDS) and HIV-related illnesses.
Lupin launched the Darunavir tablets in two variants: 600 mg and 800 mg, according to a regulatory filing.
Lupin Q4 results
Lupin staged a fairly strong show in the final quarter of the financial year 2022-23, driven by higher-than-expected growth across geographies, better operating performance and lower taxes.
The company’s consolidated net profit stood at Rs 236 crore for the January-March quarter as compared to Rs 167 crore Zee Business estimates, while the topline grew 12.1 percent on-year to Rs 4,330.3 crore in the fourth quarter. Zee Business expected Lupin to report revenue of Rs 4,163 crore.
What does Lupin do?
Lupin develops and commercialises a wide range of branded and generic formulations, biotechnology products and APIs in more than 100 markets including the US, India, Europe and the Middle East.
The pharma giant enjoys a leadership position in the cardiovascular, anti-diabetic and respiratory segments, and has a significant presence in areas such as anti-infective, gastrointestinal (GI), central nervous system (CNS) and women’s health.
Lupin is the third-largest pharmaceutical company in the US by prescriptions. The company invested around eight per cent of its revenue in research and development (R&D) in the year ended March 2023.
Lupin shares: Past performance
Lupin shares have grown 35.6 per cent in value in the past one year, a period in which the benchmark Nifty index has risen about 12 per cent.
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