LUPIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | LUPIN | Market Cap | 97,651 Cr. | Current Price | 2,135 ₹ | High / Low | 2,228 ₹ |
| Stock P/E | 18.3 | Book Value | 596 ₹ | Dividend Yield | 0.56 % | ROCE | 21.9 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 2,111 ₹ | DMA 200 | 2,030 ₹ |
| Chg in FII Hold | 1.00 % | Chg in DII Hold | -0.98 % | PAT Qtr | 869 Cr. | PAT Prev Qtr | 2,128 Cr. |
| RSI | 49.2 | MACD | 8.08 | Volume | 4,66,859 | Avg Vol 1Wk | 8,66,339 |
| Low price | 1,774 ₹ | High price | 2,228 ₹ | PEG Ratio | 0.11 | Debt to equity | 0.04 |
| 52w Index | 79.5 % | Qtr Profit Var | 7.55 % | EPS | 126 ₹ | Industry PE | 29.0 |
📊 Financials: Lupin has a market cap of 97,651 Cr. with quarterly PAT at 869 Cr., lower than the previous quarter’s 2,128 Cr. ROE at 17.8% and ROCE at 21.9% reflect strong efficiency. Debt-to-equity ratio of 0.04 indicates an almost debt-free balance sheet. EPS stands at 126 ₹, supported by consistent profitability. Cash flows remain robust given the pharmaceutical business model.
💹 Valuation: Current P/E of 18.3 is below the industry average of 29.0, suggesting undervaluation. P/B ratio is ~3.58 (2,135 ₹ / 596 ₹), which is reasonable. PEG ratio of 0.11 indicates strong earnings growth relative to valuation. Intrinsic value appears higher than current market price, making Lupin attractive for long-term investors.
🏭 Business Model & Competitive Advantage: Lupin operates in pharmaceuticals, focusing on generics, formulations, and specialty drugs. Its competitive advantage lies in global presence, strong R&D capabilities, and diversified product portfolio. The company benefits from scale and established client relationships, though profitability is sensitive to regulatory approvals and pricing pressures.
📈 Entry Zone: With RSI at 49.2 (neutral) and DMA 200 support near 2,030 ₹, accumulation around 1,950–2,050 ₹ is favorable. Current price at 2,135 ₹ remains attractive compared to intrinsic value, offering a good entry point for long-term investors.
🕰️ Long-Term Holding Guidance: Lupin is fundamentally strong, undervalued, and has growth potential in generics and specialty drugs. Long-term holding is recommended given its strong return metrics, low debt, and global presence.
Positive
- Strong ROE (17.8%) and ROCE (21.9%).
- Debt-to-equity ratio at 0.04 shows near debt-free status.
- EPS of 126 ₹ reflects solid profitability.
- FII holdings increased by 1.00%, showing foreign investor confidence.
Limitation
- Quarterly PAT declined (869 Cr. vs 2,128 Cr.).
- DII holdings decreased by 0.98%, showing reduced domestic confidence.
- Stock trading close to high levels, limiting immediate upside.
Company Negative News
- Short-term profit decline in the latest quarter.
- Lower trading volumes compared to weekly average.
Company Positive News
- FII holdings increased significantly, signaling global investor trust.
- Strong fundamentals with low debt and high efficiency ratios.
Industry
- Pharmaceutical sector benefits from global demand for generics and specialty drugs.
- Industry P/E at 29.0 highlights Lupin’s undervaluation.
Conclusion
⚖️ Lupin is a fundamentally strong, undervalued stock with robust return metrics and a debt-free balance sheet. Entry around 1,950–2,050 ₹ is favorable, and long-term holding is recommended given its global presence and growth potential in pharmaceuticals.
Would you like me to also prepare a comparative HTML table showing Lupin vs. industry averages for quick visualization of valuation and profitability gaps?