LUPIN - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.6

📊 Fundamental Analysis Summary

Lupin Ltd. shows strong fundamentals and promising long-term potential

ROE (20.6%) & ROCE (21.3%): Excellent profitability metrics, indicating efficient use of capital.

PEG Ratio (0.47): Undervalued relative to growth; anything <1 is attractive for growth investors.

Debt-to-Equity (0.32): Low leverage, financially stable.

Dividend Yield (0.60%): Modest, but consistent payout.

EPS (₹71.9): Solid earnings base.

Industry PE (34.0) vs Stock PE (27.9): Slightly undervalued compared to peers.

📈 Technical & Valuation Insights

Current Price: ₹1,985

DMA 50/200: ₹1,960 / ₹1,981 — price hovering near long-term averages, indicating consolidation.

RSI (58.2): Neutral zone, not overbought or oversold.

MACD (-1.15): Mild bearish crossover, but not alarming.

Volume Spike: Current volume exceeds weekly average — suggests accumulation.

🎯 Ideal Entry Price Zone

Based on valuation and technical trends

Fair Entry Zone: ₹1,850–₹1,900

Near support levels and below DMA 200

Offers margin of safety and aligns with PEG-based valuation

If price dips toward ₹1,850, it becomes a strong buy for long-term investors.

🧭 Exit Strategy / Holding Period

If you already hold Lupin

Holding Period: Minimum 3–5 years

Strong fundamentals and global expansion (US generics, biosimilars, specialty drugs)

PEG and ROE suggest compounding potential

Exit Strategy

Partial Exit near ₹2,400–₹2,450 (52-week high zone) if valuation stretches beyond PE of 35+

Full Exit only if

ROE/ROCE deteriorate below 15%

PEG rises above 1.2

Regulatory headwinds persist beyond 2 quarters

🧠 Final Verdict

Lupin is a high-quality pharma stock with strong growth metrics and undervaluation signals. Ideal for long-term portfolios focused on compounding returns. Accumulate on dips and stay invested through cycles unless fundamentals weaken.

Would you like a comparison with other pharma peers like Sun Pharma or Dr. Reddy’s?

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