Lupin Receives 'Buy' Rating from MarketsMOJO, Strong Financials and Market Outperformance Boost Stock

Lupin, a leading pharmaceutical company in the Largecap industry, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Buy' on November 11, 2024.
One of the main reasons for this upgrade is Lupin's strong ability to service debt, with a low Debt to EBITDA ratio of 1.27 times. This indicates the company's financial stability and ability to manage its debt effectively.

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 also at its highest at 18.68%.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend. With an attractive valuation and a price to book value of 6.1, Lupin's stock is currently trading at a discount compared to its average historical valuations.

Moreover, the stock has generated a return of 76.57% in the past year, while its profits have risen by 97.3%. This results in a low PEG ratio of 0.4, indicating that the stock is undervalued.

Another positive aspect of Lupin is its high institutional holdings at 46.6%. These investors have better capability and resources to analyze the fundamentals of companies, making their investment in Lupin a positive sign for retail investors.

In the long term, Lupin has also shown market-beating performance, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. This further solidifies the company's potential for growth and success.

However, there are some risks associated with investing in Lupin. One of them is the poor long-term growth, with the company's operating profit growing at an annual rate of -13.89% over the last 5 years. This is something investors should keep in mind while making their investment decisions.

Overall, Lupin's upgraded stock call to 'Buy' by MarketsMOJO is a positive sign for the company, with its strong financials, attractive valuation, and market-beating performance making it a promising investment opportunity.