Lupin Receives 'Buy' Rating and Shows Strong Financial Performance, Making it a Promising Stock for Investors

Lupin, a leading pharmaceutical company in the Largecap industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.27 times.
In addition, Lupin has declared very positive results for the last 8 consecutive quarters, with a growth in net profit of 6.7% in September 2024. The company's operating cash flow is also at its highest at Rs 3,648.36 Cr, and its return on capital employed (ROCE) is at a high of 18.68%. Furthermore, the operating profit to interest ratio is also at its highest at 18.91 times.

Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend. With a return on equity (ROE) of 16.8, the stock is attractively valued with a price to book value of 5.9. It is also trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 61.48%, while its profits have risen by 97.3%. The PEG ratio of the company is also at a low of 0.4.

Moreover, Lupin has high institutional holdings at 46.6%, indicating that these investors have better capability and resources to analyze the fundamentals of the company compared to retail investors. This has also contributed to the stock's market-beating performance, with a return of 61.48% in the last year, much higher than the market (BSE 500) returns of 28.06%.

However, there are some risks to consider. The company has shown poor long-term growth, with an annual rate of -13.89% for operating profit over the last 5 years. This could potentially impact the company's future performance.

Overall, with its strong financials, attractive valuation, and market-beating performance, Lupin is a promising stock to consider for investors.