LUPIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | LUPIN | Market Cap | 1,05,389 Cr. | Current Price | 2,305 ₹ | High / Low | 2,381 ₹ |
| Stock P/E | 19.1 | Book Value | 596 ₹ | Dividend Yield | 0.52 % | ROCE | 21.9 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 2,285 ₹ | DMA 200 | 2,146 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | -0.26 % | PAT Qtr | 1,241 Cr. | PAT Prev Qtr | 869 Cr. |
| RSI | 49.5 | MACD | 4.44 | Volume | 11,11,629 | Avg Vol 1Wk | 10,25,500 |
| Low price | 1,837 ₹ | High price | 2,381 ₹ | PEG Ratio | 0.11 | Debt to equity | 0.04 |
| 52w Index | 86.1 % | Qtr Profit Var | 18.6 % | EPS | 120 ₹ | Industry PE | 30.1 |
📊 Lupin (LUPIN) demonstrates strong fundamentals with a market cap of ₹1,05,389 Cr. and current price of ₹2,305, trading close to its 52-week high of ₹2,381. Efficiency metrics are robust — ROE at 17.8% and ROCE at 21.9% — supported by strong quarterly PAT growth (+18.6%). Valuation remains attractive with a P/E of 19.1 compared to the industry average of 30.1, and PEG ratio at 0.11 highlights excellent growth-adjusted valuation. Debt-to-equity is very low at 0.04, reflecting a strong balance sheet. EPS at ₹120 is healthy, while technicals show stability with RSI at 49.5 and MACD positive.
💡 Entry Zone: ₹2,280–₹2,300 (near 50 DMA support)
📈 Long-Term Holding: Highly suitable for long-term investors given strong fundamentals, attractive valuation, and consistent profitability. Accumulation on dips below ₹2,300 offers excellent value.
✅ Positive
- Strong ROE (17.8%) and ROCE (21.9%) highlight efficiency
- Attractive valuation (P/E 19.1 vs industry 30.1)
- PEG ratio (0.11) indicates excellent growth-adjusted valuation
- Debt-to-equity ratio (0.04) reflects strong financial stability
- Quarterly PAT growth (+18.6%) shows earnings momentum
⚠️ Limitation
- Stock trading close to 52-week high (₹2,381), limiting immediate upside
- DIIs reduced holdings (-0.26%), showing weaker domestic support
- Moderate RSI (49.5) indicates neutral momentum
📉 Company Negative News
- Marginal decline in DII holdings
- Resistance near 52-week high may trigger profit booking
📈 Company Positive News
- PAT improved significantly (₹869 Cr → ₹1,241 Cr)
- FIIs increased holdings (+0.20%)
- Strong EPS base (₹120) supports earnings visibility
🏭 Industry
- Pharma sector trades at higher P/E (30.1), making Lupin relatively undervalued
- Sector outlook remains positive with demand visibility in generics and specialty drugs
🔎 Conclusion
Lupin offers a compelling investment case with strong profitability, low debt, and attractive valuation. Entry near ₹2,280–₹2,300 provides a favorable risk-reward setup. Long-term investors can accumulate confidently, as fundamentals and sector positioning support sustained growth and value creation.