LUPIN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here's a deep dive into Lupin's fundamentals and what they tell us

📊 Core Financials

Profitability: Strong ROE (20.6%) and ROCE (21.3%) indicate efficient capital utilization and robust returns.

Quarterly Performance: Profit After Tax dipped from ₹855 Cr. to ₹773 Cr., but the quarterly profit variance of 115% shows high growth over the prior year.

Debt & Leverage: Debt-to-equity ratio of 0.32 suggests a healthy balance sheet and manageable leverage.

EPS: ₹71.9 is solid and supports its valuation metrics.

Cash Flows: Not detailed here, but ROE and ROCE suggest efficient reinvestment and earnings quality.

📈 Valuation Indicators

Metric Value Insight

Stock P/E 27.9 Reasonable compared to industry P/E of 34

P/B Ratio ~5.26 Slightly high—indicates premium valuation

PEG Ratio 0.47 Very attractive—suggests undervaluation relative to earnings growth

Intrinsic Value Likely lower than market price But PEG and returns support premium pricing

🏭 Business Model & Competitive Advantage

Lupin is a major player in generics and biosimilars, benefiting from scale and global distribution.

Consistent profitability and high ROCE/ROE support its competitive moat.

Innovation pipeline and compliance standards help differentiate it in a crowded pharma space.

📉 Technical Snapshot

Price near DMA 200: ₹1,985 is hovering around both DMA 50 (₹1,960) and DMA 200 (₹1,981)—indicating a consolidation zone.

RSI at 58.2: Neutral, no extreme overbought/oversold signal.

MACD negative: Suggests mild bearishness—possible pullback or sideways action.

🔎 Entry Zone & Long-Term View

Entry Zone: ₹1,850–₹1,900 range looks attractive based on DMA support and PEG ratio.

Long-Term Holding: Ideal for patient investors. Strong fundamentals, consistent profitability, moderate debt, and global positioning make it suitable for multi-year holding.

Would you like a technical chart or comparison with peers like Cipla or Sun Pharma to dive deeper?

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