Lupin Shares: Profit increased by 52%
Lupin Share Price: Nomura has given a target price of Rs 1,949
Lupin Share Price: Lupin shares closed with a fall of more than 4 percent on Tuesday, May 7. This fall in the company's shares has come a day after its March quarter results.
The consolidated net profit of the pharma company increased by 52 per cent year-on-year to Rs 368 crore in the March quarter, compared to Rs 242 crore in the same quarter of the previous financial year.
The company's revenue increased by 12 percent to Rs 4,961 crore in the same quarter, which was Rs 4,430 crore in the same quarter of the previous financial year.
The company's board declared a dividend of Rs 8 on each share with face value of Rs 2 for the March quarter FY2024.
Lupin's March quarter operating profit grew by a strong 67 per cent year-on-year at Rs 1,026 crore, compared to Rs 615 crore in the same period of the previous financial year. Meanwhile, operating profit margin expanded 6.8 percent to 21 percent compared to the year-ago period.
What should investors do now?
Brokerage firm Nuvama said the company's margin expansion remained sharp and was 8 percent above its estimates. The brokerage said margin expansion was quite impressive despite a weak quarter and higher spend on R&D.
The company's management has predicted strong growth in the coming quarters. Nilesh Gupta, Managing Director, Lupin, said, “FY2024 has been a year of revival for Lupin.
Our growth has accelerated across key geographies and our margins have also consistently improved. We are looking for further strength in FY2025.” have hope."
Nomura also believes that the launch of several new products in the US and strict control on costs can further boost the company's shares. Nomura recommends 'buy' on Lupin stock with a target price of Rs 1,949.
Meanwhile, brokerage firm Macquarie continued its 'outperform' rating on Lupinand gave it a target of Rs 1,530. However, Citi, on the other hand, has maintained 'Sell' rating on the stock and given a target price of Rs 1,380.