Lupin’s 4QFY21 revenues were in line with our estimates and with strong cost controls, the company continued its impressive margin recovery in 4QFY21.
Chirag Batavia • 17 May 2021
Lupin Ltd
- Lupin’s 4QFY21 revenues were in line with our estimates and with strong cost controls, the company continued its impressive margin recovery in 4QFY21.
- The company’s focus now shifts to progress across various complex assets in the US over FY22-23. With FDA issuing guidance on remote inspections of overseas facilities, potential resolution of Goa/Indore units by 2HFY22 are additional triggers for the US.
- With steady ramp-up in ProAir and revival of domestic growth in FY22, Lupin is well-positioned to deliver strong margin expansion over FY22-23E.
- We revise our FY22-23E estimates by 1-3% to bake in lower tax rate guidance. Despite the recent rally, we derive comfort from Lupin’s strong medium-term growth visibility led by inhalers/biosimilars and other complex assets.
- We maintain our BUY rating with revised Fair Value to Rs. 1320 based on 24X FY23E EPS.
Lupin Ltd: BUY
Dated: 17 th May 2021
CMP: Rs.1179
Fair Value: Rs.1320
Potential Upside: 12%
Market Cap: Rs.53,379 Cr
Time Frame: 12 months
Note: The above is a brief note on the company, based on the inputs of KIE research report dated 13 th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE
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