Views on Lupin Limited 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on Lupin Limited 1QFY2017 Results:

"For 1QFY2017, the company posted results better than expected numbers, on profit front, mainly on back of lower taxes and higher than expected other income. Sales came in at INR 4316cr V/s INR 4,150cr expected V/s INR 3,074cr, a YoY growth of 40.4%. The sales growth came in on back of USA (INR 2188.6cr) which posted a YoY growth of 82.3%. The growth in other geographies- India (INR9 31.3cr, YoY growth of 5.2%), APAC (INR 541.6cr, a YoY growth of 32.9%), EMEA (INR 219.4cr, a YoY growth of 20.6%), LATAM (INR 108.9cr, a YoY growth of 76.8%) and ROW (INR 36.9cr, a YoY growth of 117.1%). API sales (INR 286.9cr) a YoY dip of 12.4%. On the operating profit front, the EBITDA margins came in at 27.4% V/s 29.3% expected and V/s 24.1% in 1QFY2016. The expansion in the margins came lower than expected on back of employee cost, a YoY growth of 45.2% and R&D expenses which grew by 104.8% YoY ( 11.6% of sales in 1QFY2017 V/s 7.9% of sales 1QFY2016). Expansion in OPM along with low taxations and higher other income aided the Adj. net profit came in at INR 882cr V/s INR 777cr expected V/s INR 525cr in 1QFY2016, a YoY growth of 68.0%. We maintain our ACCUMULATE rating on the stock with a price target of INR 1,809."

Shares of LUPIN LTD. was last trading in BSE at Rs.1578.85 as compared to the previous close of Rs. 1580.05. The total number of shares traded during the day was 235868 in over 4896 trades.

The stock hit an intraday high of Rs. 1595 and intraday low of 1568.5. The net turnover during the day was Rs. 373115473.

Source : Equity Bulls

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