 "pills")
Lupin share price: Pharmaceutical giant Lupin’s shares were in demand on Thursday, February 13, 2025, as the scrip rallied 5.69 per cent to hit an intraday high of Rs 2,140.20, driven by a strong performance in the third quarter of the financial year 2025 (Q3FY25).
Lupin reported a 39.5 per cent year-on-year increase in profit, climbing to Rs 855.1 crore from Rs 613.1 crore in Q3FY24. Revenue rose 11 per cent to Rs 5,767.7 crore, compared to Rs 5,197.4 crore in the same period last year.
Lupin’s operational performance was strong too, with earnings before interest, taxes, depreciation, and amortisation (Ebitda) surging 30.6 per cent to Rs 1,355.8 crore, leading to an expansion in the Ebitda margin to 23.5 per cent, up 350 basis points from 20 per cent a year ago.
Analysts upbeat
Domestic, as well as global brokerages are optimistic about Lupin’s future, citing strong earnings visibility and a promising product pipeline.
Also Read
Nomura, while noting that Q3FY25 results were in line with estimates (adjusted for provisions), highlighted Lupin’s robust position in the US market, particularly with its double-digit growth forecast for FY25.
The company’s pipeline, particularly in complex generics, injectables, and biosimilars, is expected to contribute majorly to future growth. Nomura has set a target price of Rs 2,350 for Lupin's stock, indicating a potential upside of 16 per cent.
Nuvama was similarly positive, noting that Lupin’s Q3FY25 revenue, adjusted Ebitda, and profit after tax (PAT) all exceeded consensus expectations. The brokerage sees strong earnings visibility due to an attractive launch pipeline and the company’s growing market share in the US. Nuvama retained its ‘Buy’ rating, maintaining a target price of Rs 2,466.
Emkay, on the other hand, raised its estimates, with Q3FY25 Ebitda and PAT surpassing both the brokerage’s and Street estimates by a considerable margin. The company's improved Ebitda margin and the upward revision of its US growth forecast for FY25 were cited as key positives by the analysts. Thus, Emkay has set a target price of Rs 2,800 for the stock.
Impressive margins, US growth drive optimism
Lupin’s solid operational performance, especially in the US market, has further fueled optimism. Motilal Oswal raised its earnings estimates for FY25-27, citing the benefits of the Production Linked Incentive (PLI) scheme and Lupin’s strong ANDA pipeline for the US market.
The brokerage firm expects niche product launches in the US and robust execution in domestic markets to support healthy Ebitda growth. However, the brokerage maintained a ‘Neutral’ rating with a target price of Rs 2,150, citing that the stock’s current valuation adequately captures the expected earnings upside.
InCred Equities highlighted the company’s strong overall performance, particularly driven by better-than-expected margins. With the US business growth guidance raised to double digits for FY25, InCred retained its ‘Add’ rating and an unchanged target price of Rs 2,329.
Meanwhile, Goldman Sachs reportedly maintained a ‘Neutral’ rating, raising its target price from Rs 2,150 to Rs 2,225. It noted that Lupin’s improved product mix and lower input costs contributed to its better-than-expected Ebitda margins. The firm expects Lupin to continue growing at a pace of 20 per cent-30 per cent, in line with the broader pharmaceutical market, with India and the US markets expected to drive future growth.
A bright outlook for Lupin
With its strong Q3FY25 performance and optimistic projections for the coming years, Lupin seems well-positioned to continue its growth trajectory.
Analysts across the board are bullish on the company's prospects, with expectations for solid growth in both domestic and international markets.
Despite some challenges, such as delays in complex injectables, the company’s impressive pipeline and cost optimisation strategies have investors excited about its future.
