 "Lupin nears lifetime high on heavy volumes")
Shares of Lupin were trading higher by 3.2% at Rs 2,054 on the National Stock Exchange (NSE) on back of heavy volumes. The stock hit an intra-day high of Rs 2,057, is less than 3% away from its lifetime high of Rs 2,115 touched in April this year.
Till 12:08 p.m. a combined 1.13 million shares have already changed hands against an average around one million shares that were traded daily in past two weeks on the NSE and BSE.
The stock of pharmaceutical company outperformed the market by surging 28% in past two months after the company had entered a “definitive agreement to acquire privately-held GAVIS Pharmaceuticals LLC and Novel Laboratories Inc, subject to certain closing conditions, in a transaction valued at $880 million, cash-free and debt-free. The CNX Nifty has fallen 6% during the same period.
Amey Chalke analyst at Motilal Oswal research reiterates ‘buy’ rating on the stock with a target price of Rs 2,280 as he expect the company to sustain 30% premium to the sector average multiple due to strong execution track record, margin expansion, potential earning upgrades and capability to generate strong free cash flows over the next three years.
With a recent acquisition of Gavis, Lupin is set to become a formidable player in the generics market (around USD 1.6 billion sales by FY18). The domestic business growth is likely to outpace market growth, led by a thrust in chronic therapies; besides, first-mover advantage in Japan generics (12% of sales) would create long-term value for the company, analyst said in a report dated September 1, 2015.
Till 12:08 p.m. a combined 1.13 million shares have already changed hands against an average around one million shares that were traded daily in past two weeks on the NSE and BSE.
The stock of pharmaceutical company outperformed the market by surging 28% in past two months after the company had entered a “definitive agreement to acquire privately-held GAVIS Pharmaceuticals LLC and Novel Laboratories Inc, subject to certain closing conditions, in a transaction valued at $880 million, cash-free and debt-free. The CNX Nifty has fallen 6% during the same period.
Amey Chalke analyst at Motilal Oswal research reiterates ‘buy’ rating on the stock with a target price of Rs 2,280 as he expect the company to sustain 30% premium to the sector average multiple due to strong execution track record, margin expansion, potential earning upgrades and capability to generate strong free cash flows over the next three years.
With a recent acquisition of Gavis, Lupin is set to become a formidable player in the generics market (around USD 1.6 billion sales by FY18). The domestic business growth is likely to outpace market growth, led by a thrust in chronic therapies; besides, first-mover advantage in Japan generics (12% of sales) would create long-term value for the company, analyst said in a report dated September 1, 2015.
