Dear All,
Forwarding you the Result Update on Lupin for 4QFY2011 with a Buy recommendation and a Target Price of `593 (12 months).
For 4QFY2011, Lupin reported mostly in-line results. The company registered revenue growth of 17.5% yoy to `1,512cr, despite reporting just 10% yoy growth in advanced markets, which are the key markets for Lupin. The domestic market reported 20% yoy growth during 4QFY2011. We maintain our Buy recommendation on the stock with a revised target price of `593.
Mixed set of numbers, but outlook intact: Lupin reported net sales of `1,512cr (`1,286cr), up 17.5% yoy, above our estimate of `1,489cr. Gross margin dropped to 59.3% (62.0%), which we had expected to be flat for the quarter. This led to OPM contracting to 17.8% (19.5%), lower than our estimate of 18.6%. Lupin reported single-digit net profit growth of 3% yoy to `227cr (`220.5cr), lower than our estimate of `239cr for 4QFY2011. For the full year, Lupin reported revenue and PAT growth of 19.5% and 26.5%, respectively.
Outlook and valuation: We expect net sales to grow at a 20.4% CAGR to `8,272cr and earnings to grow at a 24.0% CAGR to `29.7/share over FY2011–13E. Currently, the stock is trading at 19.7x and 14.8x FY2012E and FY2013E earnings, respectively. We maintain our Buy recommendation on the stock with a revised target price of `593.
Kindly click on the following link to view the Report.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
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