Lupin - All round growth aided by favorable currency - Buy - Emkay

Reco: BUY
CMP: Rs 584
Target Price: Rs 630

- Lupin Q1FY13 Results, above expectations - a) Revenue up by 44% YoY to Rs22.5bn, b) EBIDTA up by 55% YoY to Rs4.6bn and c) PAT up by 33% YoY to Rs2.8bn

- Strong growth from all segments aided by favorable currency. US grew 63% led by launch of Combivir, Fortamet, Seroquel & Geodon. India grew 25% led by new launches & the Lilly deal. Japan grew 100% due to I'rom acquisition

- Gross margins expanded 300bps YoY & QoQ to 64.7% on back of strong growth in India & US and INR dep against USD/ Yen

- Going forward - Large Para IV pipeline, strong OC basket in the US coupled with robust India biz will drive Lupin's earnings CAGR of 22% over FY12-14E. Maintain Buy with a target price of Rs630 (20x FY14E EPS of Rs31.5).

Source : Equity Bulls

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