Buy Lupin, target price Rs 2120: Kotak Securities

On December 18th, Kotak Securities recommended buying Lupin shares at their current market price of Rs. 2105.75. They assigned a target price of Rs. 2120, indicating a potential gain for investors. This buy call suggests that Kotak Securities is optimistic about Lupin's performance and expects the stock price to rise in the short term.

About Lupin:

Lupin Limited is a leading global pharmaceutical company headquartered in Mumbai, India. Listed on the National Stock Exchange of India (NSE), Lupin is engaged in the development, manufacture, and marketing of a wide range of branded and generic formulations, biopharmaceuticals, and active pharmaceutical ingredients (APIs). The company operates in over 100 countries, with key markets in the US, India, Australia, Japan, and Europe. Lupin's product portfolio covers a broad spectrum of therapeutic areas, including cardiovascular, anti-infectives, respiratory, gastrointestinal, central nervous system, and diabetes.

52 Week Price Trend:

Lupin Limited, a leading pharmaceutical company, currently trades at Rs 2105.75, hovering around its 52-week high of Rs 2312 and well above its 52-week low of Rs 1200.15. Despite facing regulatory headwinds and market volatility, Lupin's robust product portfolio, cost optimization initiatives, and geographical diversification have enabled it to maintain a strong position in the industry. Analysts remain cautiously optimistic, with a mixed outlook on the stock's near-term performance due to ongoing challenges in the domestic market and competitive dynamics. However, the company's long-term growth prospects remain promising, supported by its focus on innovation and global expansion.

Stratzy's MOST Analysis:

Lupin's AA- rating by Stratzy's MOST framework indicates low fundamental risks. This rating is based on an assessment of the company's management, outlook, safety, and trend. Stratzy considers Lupin to have strong management, a positive outlook, a solid financial position, and a favorable trend. This overall rating suggests that Lupin is a low-risk investment with solid fundamentals.

Company's Fundamentals:

Lupin Ltd., an NSE-listed pharmaceutical company, has a current stock PE (Price-to-Earnings ratio) of 37.35, indicating that investors are paying ₹37.35 for every rupee of annual earnings. This implies the stock is currently valued at a premium compared to its earnings, but it doesn't necessarily mean it's overvalued. Lupin's PB Ratio (Price-to-Book ratio) of 6.27 suggests its market value is 6.27 times its book value (shareholders' equity). Finally, the company's Dividend Yield of 0.37% indicates it pays an annual dividend of ₹0.37 for every ₹100 invested, providing a modest income stream to investors.

Fundamental and Technical information provided in this blog were last updated on 18 Dec, 2024

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