Shares of Lupin Ltd currently trading at the price of ₹788.65 surged 2.78 percent on Monday by hitting a 52-week high of ₹800 or 16.77 percent.
One of the probable reasons for the stock to hit a high price is the company’s recent announcement of strong Q4 FY 22-23 earnings.
Based on an earnings call Morgan Stanley upgraded the stock to overweight and visibility of high-quality new product launches in this Fiscal year and recommended a target price of ₹ 918 or 28 percent upward on Lupin Ltd.
Morgan Stanley anticipates free cash flow generation in FY23 and accepts a first-to-market position in several new launches of drugs such as gSpiriva, gDiazepam Gel, gNascobal Nasal Spray, and gDarunavir.
As per Consolidated financials of the previous quarter, Lupin’s operating revenues have increased by 2.5 percent from ₹ 4,322 crores in Q3 to ₹ 4,430 crores in Q4 FY23. Similarly, for YoY comparison, the revenues increased from ₹ 16,405 crores during FY 21-22 to ₹ 16,641 crores in FY 22-23.
The net profit of the company has slightly increased by 54 percent from ₹ 157 crores in Q3 to ₹ 242 crores in Q4, Similarly, for YoY comparison the net profit significantly increased from a loss of ₹ 1,509 crores during FY 21-22 to profit of ₹ 447 crores in FY 22-23.
Lupin Ltd is engaged in the business of Manufacture of Pharmaceuticals, Lupin has a portfolio of over 200 products, including several complex generics and niche products. It is recognized as one of the world’s largest manufacturers of Tuberculosis drugs. The company has a significant market share across multiple therapy areas such as Cardiovascular, Diabetology, Asthma, Paediatric, Central Nervous Systems and etc. company has a presence in India, the USA, Australia, South Africa, Netherlands, Brazil, and Mexico.
The basic profitability ratios exhibiting operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE) showed an upward trend in this financial year. ROE moved from -12.57 percent during FY 21-22 to 3.45 percent in FY 22-23 and ROCE, keeping the time frame the same, moved from -9.07 percent to 7.23 percent and the debt-equity ratio stands at 0.34.
In the past month, the stock has jumped around 17.41 percent ranging from ₹ 658.15 to the current price levels.
According to the latest data pertaining to the shareholding pattern, the promoters hold a 47.08 percent stake, and Foreign Institutional Investors (FIIs) hold a 13.32 percent stake in the company for FY 22-23.
Written by Omkar C
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