Edelweiss: Reiterates Buy on Lupin

Edelweiss has reiterated its buy rating on Lupin convinced that the company is on a high growth trajectory and could very well surpass our estimates for FY08.

In a report released recently, the research house said: "We believe that the US generics business is likely to grow at a higher rate than our earlier estimate of 73% in FY08E. This is owing to the launch of major generic products "" Statins, Cefdinir, and Quinapril . The other businesses consisting of API, developing market formulations and domestic formulations will continue to show good growth.

"We have, therefore, revised our FY08 revenue estimate upwards by 2% and EPS estimate upwards by 7%. Our FY07 earnings estimate remains unchanged. At CMP of INR 502, the stock trades at a P/E of 16.7x and 13.1x on our FY07E and FY08E, respectively. We reiterate our 'BUY' recommendation."

Click here for the complete report