Lupin hits 2-year high on strong Q1 results; zooms 66% since April

With clearance of Pithampur Unit-2, the company expects to add product approvals for the US region

Shares of Lupin gained 4 per cent to hit a two-year high of Rs 1,078 per share in Friday’s intra-day trade, after the company reported consolidated profit after tax of Rs 453 crore in the June quarter, on the back of healthy operational performance.

The pharmaceutical company had posted net loss of Rs 86.8 crore in a year-ago quarter. On a sequential basis, the net profit nearly doubled from Rs 242.4 crore in Q4FY23.

At 2:28 pm; Lupin traded nearly 3 per cent higher at Rs 1,065, as compared to 0.5 per cent gain in the S&P BSE Sensex. The stock quoted at its highest level since August 2021. In the past two weeks, it rallied 15 per cent. Since April, the market price of Lupin has appreciated by 66 per cent.

The company’s revenues grew 29 per cent year-on-year (YoY) to Rs 4,818 crore, whereas its earnings before interest, tax, depreciation, and amortisation (Ebitda) grew nearly three-fold to Rs 856 crore. The Ebitda margins, too, expanded 1160 bps YoY and 480 bps sequentially to 17.8 per cent.

The company enjoys a leadership position in the cardiovascular, anti-diabetic, and respiratory segments and has a significant presence in the anti-infective, gastro-intestinal (GI), central nervous system (CNS), and women’s health areas. Lupin is the third-largest pharmaceutical company in the U.S. by prescriptions.

Building on the momentum of last few quarters, the management said that Lupin had a strong quarter with good growth across all key markets as the company continues to improve its operating margins driven by higher sales, better mix and cost optimisation initiatives.

"With the clearance of Pithampur Unit-2, the company expects to add product approvals for the US region. Getting approvals for important complex generics like Tiotropium DPI, and getting back into the launch tempo with first to market products like Darunavir and additional new product launches will help sustain the growth momentum both in topline and bottom line as we move ahead," the management said.