Despite positives, pharma major Lupin not a re-rating candidate

Analysts continue to be cautious, given the USFDA's warning letter to its plants at Goa and Indore, resolution of which is necessary to improve growth visibility

The Lupin stock has been on an upswing after the USFDA approvals, launches, progress on the biosimilar front and robust growth in the domestic business. It is not surprising that the stock, which has been an underperformer in the previous couple of years, has gained 23 per cent since its lows in May.

While pricing pressures in the US market have been weighing on its financials, product approvals and launches, including some niche products, will expand its revenue base and margins. Among the triggers are the recent announcement of about five product approvals and four launches. The company plans to