X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Lupin: Key Products Drive US growth - Views on News from Equitymaster
The India Letter
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Lupin: Key Products Drive US growth
Sep 12, 2016

Lupin has announced its 1QFY17 results. Net sales have grown by 40% YoY and net profits have surged by 55.1% YoY. Here is our analysis of the results.

Performance summary
  • Net sales grows on the back of robust performance of US business (up 82%). Excluding inorganic growth (excluding Gavis), US sales were still up by around 60% YoY. Growth was largely led by key products Glumetza and Fortamet generics. While competition has already entered in Glumetza, company continues to benefit from better pricing of Fortamet due no generic competition. Even other geographies witnessed good growth during the quarter. On the other hand, India business witnessed a disappointing growth.
  • Better product mix, with low competition launches in US helped in better operating margins. On YoY basis, operating margins have improved by 3.3%. However, on quarterly basis, EBITDA margins were down by about 3.2% as price of Glumetza generics witnessed pricing pressures and inventory acquired by Gavis was valued at market price.
  • Net profits increased by 55.1% YoY for the quarter. This was inspite of sharp surge in depreciation, taxes and interest costs.

    Financial performance: A snapshot
    (Rs m) 1QFY16 1QFY17 Change
    Net sales 30,809 43,136 40.0%
    other operating income 752 1,259 67.4%
    Expenditure 23,313 31,313 34.3%
    Operating profit (EBDITA) 8,248 13,082 58.6%
    EBDITA margin (%) 26.1% 29.5% 3.3%
    Other income 757 826 9.1%
    Interest (net) 70 320 357.1%
    Depreciation 1,014 2,027 99.9%
    Profit before tax 7,921 11,561 46.0%
    Minority Interest -23 6
    Tax 2,258 2,734 21.1%
    Profit after tax/(loss) 5,686 8,821 55.1%
    Net profit margin (%) 18.5% 20.4%
    No. of shares (m) 450.5
    Diluted earnings per share (Rs) 70.0
    Price to earnings ratio (x)* 22.0

    *based on trailing 12 months earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

LUPIN LTD SHARE PRICE


Aug 17, 2017 09:23 AM

TRACK LUPIN LTD

  • Track your investment in LUPIN LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

LUPIN LTD - ORCHID PHARMA LTD COMPARISON

Compare Company With Charts

COMPARE LUPIN LTD WITH

MARKET STATS