Lupin - Base business brilliance

Q3FY10 results review - ICICI Securities

Lupin's consolidated recurring net profit climbed 38% YoY to Rs1.6bn, in line with Street & I-Sec estimates. Consolidated revenues were up a robust 29% YoY to Rs12.7bn, powered by: i) 44% YoY surge in US/EU revenues that were partially boosted by the Antara brand acquisition and ii) 35% YoY rise in RoW markets. We believe Lupin's US branded business is being underappreciated, but is on course to double up revenues to ~Rs12bn over FY10-12E. Management indicated FY11 revenue guidance of ~25% YoY (I-Sec: 23%) excluding acquisitions. Puckered by strong growth in base business and recent closure of the Mandideep warning letter by the US FDA, Lupin remains our top BUY in the sector.

Source : Equity Bulls

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