LUPIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | LUPIN | Market Cap | 1,04,889 Cr. | Current Price | 2,295 ₹ | High / Low | 2,378 ₹ |
| Stock P/E | 19.0 | Book Value | 596 ₹ | Dividend Yield | 0.52 % | ROCE | 21.9 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 2,232 ₹ | DMA 200 | 2,095 ₹ |
| Chg in FII Hold | 1.00 % | Chg in DII Hold | -0.98 % | PAT Qtr | 1,241 Cr. | PAT Prev Qtr | 869 Cr. |
| RSI | 55.2 | MACD | 28.5 | Volume | 11,90,656 | Avg Vol 1Wk | 8,29,049 |
| Low price | 1,774 ₹ | High price | 2,378 ₹ | PEG Ratio | 0.11 | Debt to equity | 0.04 |
| 52w Index | 86.3 % | Qtr Profit Var | 18.6 % | EPS | 120 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from 869 Cr. to 1,241 Cr. QoQ, showing strong earnings growth. EPS at 120 ₹ is robust.
- Margins & Returns: ROE at 17.8% and ROCE at 21.9% are healthy, reflecting efficient capital utilization.
- Debt & Liquidity: Debt-to-equity ratio of 0.04 indicates negligible leverage, enhancing financial stability.
- Cash Flow: Strong profitability supports reinvestment and dividend payouts.
💹 Valuation Metrics
- P/E Ratio: 19.0 vs Industry PE of 27.6 → Attractive valuation.
- P/B Ratio: ~3.85 (Price 2,295 ₹ / Book Value 596 ₹) → Reasonable relative to assets.
- PEG Ratio: 0.11 → Very attractive, reflecting strong growth at low valuation.
- Intrinsic Value: Current price appears undervalued relative to earnings strength.
🏢 Business Model & Competitive Advantage
Lupin is a leading pharmaceutical company with a strong presence in generics, formulations, and specialty drugs. Its global footprint, R&D capabilities, and diversified portfolio provide a competitive edge. Regulatory approvals and product launches continue to strengthen its market position.
📈 Entry Zone & Long-Term Guidance
Technically, RSI at 55.2 and positive MACD indicate stable momentum. A good entry zone would be 2,200–2,250 ₹ (near 50 DMA). Long-term holding is advisable given strong fundamentals, undervaluation, and growth prospects.
✅ Positive
- Strong QoQ PAT growth (1,241 Cr. vs 869 Cr.).
- Healthy ROE (17.8%) and ROCE (21.9%).
- Low debt-to-equity ratio (0.04).
- Attractive PEG ratio (0.11).
⚠️ Limitation
- DII holdings decreased (-0.98%), showing reduced domestic confidence.
- Stock trading near 52-week high, limiting immediate upside.
- Pharma sector sensitive to regulatory risks.
📉 Company Negative News
- DII reduced holdings, signaling cautious sentiment.
- Stock price volatility near highs.
📈 Company Positive News
- Quarterly PAT surged significantly.
- FII holdings increased (+1.00%), showing strong foreign confidence.
🏭 Industry
The pharmaceutical industry benefits from global demand for generics, specialty drugs, and healthcare innovation. Industry PE at 27.6 highlights Lupin’s attractive valuation relative to peers. Regulatory approvals and product launches remain key growth drivers.
🔎 Conclusion
Lupin is fundamentally strong with robust profitability, low debt, and attractive valuations. Despite minor institutional sentiment shifts, its growth prospects and global presence make it a solid long-term investment. Accumulation near 2,200–2,250 ₹ is recommended for investors seeking sustained returns.