LUPIN - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.7

📈 Core Financials Overview

Profit Growth: Quarterly PAT jumped from ₹1,291 Cr to ₹2,128 Cr — a 139% increase, reflecting strong operational leverage and margin expansion.

Return Metrics

ROCE: 21.9% — excellent capital efficiency.

ROE: 17.8% — strong shareholder value creation.

Debt Profile: Debt-to-equity of 0.01 — virtually debt-free, enhancing financial flexibility.

Cash Flow: While direct cash flow data isn’t provided, high profitability and low debt imply robust operating cash flows.

💹 Valuation Indicators

Metric Value Interpretation

P/E Ratio 17.7 Undervalued vs. industry average of 33.4 — attractive entry point.

P/B Ratio ~3.85 Reasonable given strong ROE and growth trajectory.

PEG Ratio 0.10 Extremely low — suggests deep undervaluation relative to growth.

EPS ₹114 Solid earnings base supports valuation.

🧬 Business Model & Competitive Advantage

Lupin is a global pharmaceutical powerhouse with a diversified portfolio across

Generics & Specialty Drugs: Strong presence in cardiovascular, diabetes, respiratory, and CNS segments.

Global Footprint: Operations in over 100 countries, with significant U.S. market share.

R&D Focus: Investment in biosimilars, complex generics, and novel drug delivery systems.

Manufacturing Scale: FDA-approved plants across India and abroad — ensures regulatory compliance and scalability.

Its competitive edge lies in its innovation pipeline, regulatory track record, and cost-efficient manufacturing.

📊 Technical & Sentiment Signals

RSI: 65 — nearing overbought, but still within a healthy range.

MACD: Positive — bullish momentum.

Volume: Slightly below weekly average — suggests mild consolidation.

DMA 50/200: Current price above both — confirms uptrend.

🎯 Entry Zone & Long-Term Outlook

Suggested Entry Zone: ₹1,950–₹1,975 — near DMA levels and below recent highs.

Long-Term Guidance: Lupin’s fundamentals, global scale, and innovation-driven growth make it a strong candidate for long-term holding. Ideal for investors seeking a low-debt, high-growth pharma play with defensive characteristics.

If you'd like, I can also compare Lupin with peers like Sun Pharma or Dr. Reddy’s to sharpen the picture.

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