Lupin share price fell nearly 2 per cent to Rs 958.70 apiece in intraday deals, following the April-June quarter earnings last week. Lupin shares have tumbled nearly 17 per cent in seven sessions, falling from Rs 1,150.90 on 6 August 2021. Lupin has witnessed a significant amount of correction in the last few trading sessions after the firm failed to meet the earnings expectations of the analysts. “Although the company’s Q1 performance was disappointing, its broader narrative on growth remains largely on track,” Likhita Chepa, Senior Analyst at CapitalVia Global Research told Financial Express Online.
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Big Bull Rakesh Jhunjhunwala holds 1.60 per cent stake or 72.45 lakh shares in Lupin as of June quarter. Lupin stock surged to a new 52-week high of Rs 1,267.50 apiece in February this year. Since then, this pharma stock has tanked over 24 per cent. In traded volume terms, 70,000 shares have traded on BSE, and 15.28 lakh shares exchanged hands on NSE. The operating performance of the firm remained weaker. “We expect its outlook to remain stable on the back of continuous healthy growth in India and gradual ramp-up in US sales which might improve its margins. Therefore, investors can consider holding the stock with a medium to long term perspective,” Chepa added.
Lupin reported a five-fold jump in consolidated net profit at Rs 542.46 crore as compared to Rs 106.90 crore profit for the year-ago quarter. Consolidated revenue from operations of the company stood at Rs 4,237.39 crore in the quarter under review. It stood at Rs 3,468.63 crore for the same period a year ago. Despite strong Q1FY22 results showing,
Lupin has seen a sharp correction in its stock price due to competition in famotidine & pending USFDA approvals, said an analyst. “Technically, the stock is very oversold. Long-term investors should start accumulating Lupin at current prices for the near-term targets of Rs 1083-1160. While Rs 960-883 will be excellent support levels,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
Analysts at Emkay Global Financial Services have reiterated their ‘buy’ rating on the stock but cut target price to Rs1,300 from Rs1,325 as it modestly lower its earnings estimates for FY22/23/24 to reflect the Q1 miss, leading to a lower US revenue base. Those at HDFC Securities Institutional Equities slashed its target price to Rs 1,040 from Rs 1,220 earlier. It has also revised its rating to ‘reduce’ from ‘add’ earlier. Axis Securities has recommended to ‘hold’ Lupin shares with a target price of Rs 1,100. While those at Motilal Oswal Financial Services are neutral on the stock.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
