LUPIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | LUPIN | Market Cap | 1,04,184 Cr. | Current Price | 2,280 ₹ | High / Low | 2,494 ₹ |
| Stock P/E | 17.3 | Book Value | 659 ₹ | Dividend Yield | 0.53 % | ROCE | 26.6 % |
| ROE | 22.2 % | Face Value | 2.00 ₹ | DMA 50 | 2,292 ₹ | DMA 200 | 2,168 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | -0.26 % | PAT Qtr | 1,797 Cr. | PAT Prev Qtr | 1,241 Cr. |
| RSI | 47.3 | MACD | -11.1 | Volume | 13,09,203 | Avg Vol 1Wk | 12,14,317 |
| Low price | 1,837 ₹ | High price | 2,494 ₹ | PEG Ratio | 0.12 | Debt to equity | 0.04 |
| 52w Index | 67.4 % | Qtr Profit Var | 39.2 % | EPS | 139 ₹ | Industry PE | 30.5 |
📊 Core Financials: Lupin posted quarterly PAT of ₹1,797 Cr (up from ₹1,241 Cr), showing strong growth. ROE at 22.2% and ROCE at 26.6% highlight excellent efficiency. Debt-to-equity ratio of 0.04 indicates a nearly debt-free balance sheet. EPS at ₹139 reflects strong earnings power, supported by consistent cash flows.
💹 Valuation Indicators: Stock P/E of 17.3 is below the industry average (30.5), suggesting undervaluation. Book value at ₹659 vs CMP ₹2,280 shows a premium valuation, but PEG ratio of 0.12 indicates robust earnings growth relative to price. Intrinsic value appears supportive of long-term upside.
🏭 Business Model & Advantage: Lupin operates in pharmaceuticals with a diversified portfolio across generics, branded formulations, and specialty drugs. Competitive advantage lies in global presence, strong R&D, and regulatory approvals. Efficiency metrics and earnings growth reinforce overall health.
📈 Entry Zone & Holding Guidance: The stock trades near DMA 50 (₹2,292) and DMA 200 (₹2,168), showing consolidation. RSI at 47.3 indicates neutral momentum. Entry around ₹2,150–₹2,200 offers favorable risk-reward. Long-term holding is recommended given strong fundamentals and undervaluation relative to peers.
Positive
- ✅ Strong ROE (22.2%) and ROCE (26.6%) efficiency
- ✅ Robust quarterly PAT growth (₹1,241 Cr → ₹1,797 Cr)
- ✅ EPS at ₹139, reflecting strong earnings base
- ✅ Debt-to-equity ratio at 0.04, nearly debt-free
Limitation
- ⚠️ CMP trades at a premium to book value (₹659 vs ₹2,280)
- ⚠️ Slight decline in DII holding (-0.26%)
- ⚠️ Moderate dividend yield (0.53%), limited income support
Company Negative News
- 📉 DII holding decreased by 0.26%, showing cautious domestic institutional sentiment
Company Positive News
- 📈 Quarterly profit growth of 39.2% indicates strong operational momentum
- 📈 FII holding increased by 0.20%, showing foreign investor confidence
Industry
- 🌐 Pharma industry PE at 30.5, reflecting higher valuations compared to Lupin’s lower P/E
- 🌐 Long-term demand for generics and specialty drugs remains strong globally
Conclusion
🔎 Lupin is fundamentally strong with excellent efficiency, robust earnings, and undervaluation relative to industry peers. Entry near ₹2,150–₹2,200 offers better risk-reward. Long-term investors can hold confidently, supported by strong fundamentals, global presence, and industry demand.
For deeper insights, you could explore a peer comparison or a valuation analysis to assess its position against competitors and intrinsic value.