Lupin Ltd. (LUPIN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lupin

Glenmark Pharma

Sun Pharma.Inds.

Aurobindo Pharma

Torrent Pharma

Dr Reddy's Labs

Zydus Lifesci.

Mankind Pharma

Divi's Lab.

Alkem Lab

Cipla

Why is Lupin Ltd. ?

Company has a Debt to Equity ratio (avg) of 0.11 times

Healthy long term growth as Net Sales has grown by an annual rate of 13.02% and Operating profit at 34.70%

With a growth in Net Profit of 24.41%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
ROCE(HY) Highest at 27.06%
NET SALES(Q) Highest at Rs 7,474.66 cr
PAT(Q) Highest at Rs 1,560.39 cr.

With ROE of 25.7, it has a Attractive valuation with a 4.6 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.96%, its profits have risen by 75.6% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 47.03%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Lupin should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lupin for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Lupin

9.96%

0.47

21.15%

Sensex

-9.55%

-0.73

13.04%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.02%

EBIT Growth (5y)

34.70%

EBIT to Interest (avg)

6.61

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.03

Tax Ratio

22.07%

Dividend Payout Ratio

16.70%

Pledged Shares

Institutional Holding

47.03%

ROCE (avg)

13.37%

ROE (avg)

12.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.56

EV to EBIT

13.42

EV to EBITDA

11.32

EV to Capital Employed

5.03

EV to Sales

3.57

PEG Ratio

0.24

Dividend Yield

0.53%

ROCE (Latest)

37.51%

ROE (Latest)

25.68%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

26What is working for the Company

ROCE(HY)

Highest at 27.06%

NET SALES(Q)

Highest at Rs 7,474.66 cr

PAT(Q)

Highest at Rs 1,560.39 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 5,652.90 cr

PBDIT(Q)

Highest at Rs 2,485.58 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 33.25%

PBT LESS OI(Q)

Highest at Rs 1,918.63 cr.

-2What is not working for the Company

INTEREST(9M)

At Rs 342.73 cr has Grown at 38.34%

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Here's what is working for Lupin

Net Sales - Quarterly

Highest at Rs 7,474.66 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,560.39 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 2,485.58 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 33.25%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 1,918.63 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,918.63 cr has Grown at 29.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1,481.57 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,560.39 cr has Grown at 25.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1,243.97 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 5,652.90 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Lupin

Interest - Nine Monthly

At Rs 342.73 cr has Grown at 38.34%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 140.71 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income