Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Lupin Ltd. indicates a positive outlook on the stock’s potential for returns relative to its risks. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Investors should understand that this rating suggests Lupin Ltd. is expected to outperform the broader market or its sector peers over the medium term, making it a favourable addition to a diversified portfolio.
Quality Assessment
As of 20 January 2026, Lupin Ltd. maintains a strong quality grade, reflecting robust operational and financial health. The company’s low average Debt to Equity ratio of 0.10 times underscores prudent financial management and limited leverage risk. Additionally, Lupin’s return on equity (ROE) stands at an impressive 22%, signalling efficient utilisation of shareholder capital to generate profits. The company’s operating profit margin growth rate of 37.09% further highlights its ability to sustain profitability amid competitive pressures.
Valuation Perspective
The valuation grade for Lupin Ltd. is classified as very attractive. Currently, the stock trades at a price-to-book (P/B) ratio of 5.1, which, while seemingly elevated, is actually at a discount compared to its peers’ historical averages. This suggests that the market may be undervaluing Lupin’s intrinsic worth relative to comparable companies in the Pharmaceuticals & Biotechnology sector. Moreover, the company’s price-to-earnings-to-growth (PEG) ratio is a low 0.4, indicating that earnings growth is not fully priced into the stock, presenting a compelling opportunity for value-oriented investors.
Financial Trend and Performance
The financial trend for Lupin Ltd. remains positive, supported by strong recent results and consistent growth. The latest quarterly data shows a significant increase in profit before tax excluding other income (PBT LESS OI) to ₹1,916.97 crores, representing an 82.3% growth compared to the previous four-quarter average. The company’s return on capital employed (ROCE) for the half-year period is at a high 22.22%, reflecting efficient capital utilisation. Operating profit to interest coverage ratio has reached 21.76 times, indicating a comfortable buffer to meet interest obligations. Over the past year, Lupin’s net sales have grown at an annualised rate of 10.57%, reinforcing its steady top-line expansion.
Technical Outlook
From a technical standpoint, Lupin Ltd. exhibits a mildly bullish trend. The stock’s recent price movements show resilience, with a 3-month return of +11.38% and a 6-month return of +12.23%. Year-to-date, the stock has gained 2.56%, while the one-year return stands at 1.60%. Despite a slight dip of 0.56% on the most recent trading day, the overall technical indicators suggest a positive momentum that supports the 'Buy' rating. Institutional investors hold a significant 47.05% stake in the company, which often correlates with greater market confidence and stability in share price movements.
Sector and Market Context
Lupin Ltd. operates within the Pharmaceuticals & Biotechnology sector, a space characterised by innovation, regulatory challenges, and steady demand for healthcare products. The company’s large-cap status provides it with the scale and resources to compete effectively both domestically and internationally. Its strong fundamentals and attractive valuation position it favourably against sector peers, especially in a market environment where investors seek quality growth stocks with reasonable valuations.
Implications for Investors
For investors, the 'Buy' rating on Lupin Ltd. suggests that the stock is well-positioned to deliver favourable returns based on its current financial health, valuation, and market momentum. The combination of strong profitability metrics, low leverage, and attractive valuation multiples indicates a company with sustainable growth prospects. However, as with all investments, investors should consider their individual risk tolerance and portfolio diversification needs before making decisions.
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Summary of Key Metrics as of 20 January 2026
Lupin Ltd.’s current Mojo Score stands at 74.0, reflecting a solid 'Buy' grade, up from a previous 'Hold' rating with a score of 61. The company’s market capitalisation places it firmly in the large-cap category, providing investors with liquidity and stability. Its low debt levels, strong profitability ratios, and positive earnings growth underpin the favourable rating. The stock’s recent price performance, combined with institutional backing, further supports the positive outlook.
Conclusion
In conclusion, Lupin Ltd.’s 'Buy' rating by MarketsMOJO as of 12 November 2025 remains justified by the company’s current fundamentals and market position as of 20 January 2026. Investors looking for exposure to the Pharmaceuticals & Biotechnology sector may find Lupin an attractive option due to its quality metrics, attractive valuation, positive financial trends, and supportive technical signals. Continuous monitoring of quarterly results and sector developments will be essential to assess ongoing performance and maintain an informed investment stance.
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