Lupin Ltd - Strong US negates weak domestic sales; Future outlook steady - Emkay

Reco: BUY
CMP: Rs 801
Target Price: Rs 942

- Lupin Q1FY14 Results- a) Revenue up by 9.9% yoy to Rs 24.8bn, b) EBIDTA up by 28.8% yoy to Rs 5.9bn and c) APAT up by 42.3% yoy to Rs4.0bn

- US business was up by 20% yoy to USD 180mn on the back of strong growth in generic business; however Branded business declined by 10% due to weak sales of Antara brand

- Going forward, Lupin will launch 15-20 ANDAs in FY14E; so far the company has launched 8-9 new products in US. India business expected to grow 15-16% in FY14E

- On back of strong outlook, we maintain BUY on the stock with a revised Target Price of Rs 942 (22x FY15E EPS of Rs 42.8)

Source : Equity Bulls

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