Views on Lupin 4QFY2014 results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research-Pharma, Angel Broking) on Lupin 4QFY2014 results:

"Lupin, posted numbers ahead of our expectations, on the OPM and net profit front, while the sales came in lower than expected. During the quarter, company posted a revenue growth of 20.0% to end the period at Rs. 3051.5cr V/s Rs. 3598cr expected, mainly driven by exports. The growth in the exports, was lead by US (its key market), which grew by 28% yoy, while the ROW, which grew by 38% yoy respectively. Other market, like Europe and Japan grew by 20% yoy and 17% yoy respectively. On the negative side, the Indian market posted a mere growth of 2% yoy. Also, on the OPM front, it posted OPM's of 26.6% V/s 24.0% in 4QFY2013 and expectation of 24.0%), an expansion of 265bps. The margin expansion is mainly on back of gross margin expansion, which came in at 67.9% V/s 64.4% in 4QFY2013.Expansion in the OPM, along with robust growth in the other income, which grew by 42.6% yoy aided its net profit, came in at Rs. 550cr, V/s expected Rs. 500cr, a yoy growth of 35.5%. We maintain an accumulate on the stock with a target priced of Rs. 1,122."

Source : Equity Bulls

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