Views on Lupin Ltd 2QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Lupin Ltd 2QFY2016 Results:

"For 2QFY2016, the company posted bad set of numbers, with OPM's coming in lower than expected, consequently net profit. The company posted a 2.0% growth in sales to end the period at INR 3178cr V/s INR 3272cr estimated, mainly driven by European markets. Its key market US (INR 11,550cr), posted a dip of 9.2%, on slow pace of approvals. The company launched 4 products in US during the period. The company expects the US sales to get normalized by 4QFY2016. Other key markets: India, Europe, Japan, South Africa and ROW, which posted a growth of 9.4%, 32.2%, -6.5%, -5.6% and 52.9% yoy respectively.

On operating front, the Gross margins came in at 64.5% V/s 65.7% expected. However, a lower growth and 19.4% and 36.2% rise in the Staff cost and R&D expenditure lead the OPM come in at 16.6% V/s 24.6% expected and 24.9% in 2QFY2015. Thus, the net profit came in at INR 408.5cr V/s INR 578.6cr expected and INR 630.0cr, a yoy dip of 35.2%. We maintain our NEUTRAL stance on the stock."

Shares of LUPIN LTD. was last trading in BSE at Rs.1910 as compared to the previous close of Rs. 1945.65. The total number of shares traded during the day was 177829 in over 11537 trades.

The stock hit an intraday high of Rs. 1947.4 and intraday low of 1885.05. The net turnover during the day was Rs. 339949750.

Source : Equity Bulls

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