Lupin is trading higher by 2% at Rs 574 on reporting higher than expected operating profit margins (OPM) at 23% for the quarter ended September 2012 against 21.68% in June quarter on back of reduced research and development (R&D) expenses during the period.
Meanwhile, the net profit of drug maker rose by 9% at Rs 291 crore in July-September quarter over the previous year quarter, while net sales increased by 29% to Rs 2,239 crore on year-on-year basis.
“The OPM’s came in higher than the expectations of 19.1%. The OPM expansion came mainly on back of reduced R&D expense during the period, which declined from Rs 138 crore in September 2011 quarter to Rs 94 crore in September 2012 quarter,” said Sarabjit Kour Nangra, VP-Research at Angel Broking. Analyst maintains a buy on the stock with a target price of Rs 647.
The stock opened at Rs 562 and touched high of Rs 575 on the BSE. A combined 560,631 shares have changed hands on the counter till early noon deals on both the exchanges.