Nucor earnings beat by $0.08, revenue fell short of estimates
On Friday, BofA Securities adjusted its price target for Lupin (NSE:LUPN) (LPC:IN), a prominent pharmaceutical company, increasing it slightly to INR1,930.00 from the previous INR1,900.00. Despite the modification, the firm maintained its Underperform rating on the stock.
The revision followed Lupin’s fourth-quarter financial results for the fiscal year 2025, which aligned with market expectations. The company reported an EBITDA of Rs12.9 billion, equating to a margin of 22.8%. This performance was influenced by a 7% growth in the Indian market, which was considered moderate, and balanced by a reduction in other operating expenses compared to the adjusted run-rate for FY25.
BofA Securities highlighted the potential impact of the first-to-file (FTF) launch of Tolvaptan, a drug used to treat certain patients with kidney disease, which is expected to enhance margins in the first half of the fiscal year, contributing to an anticipated 23% margin for FY25. However, the firm pointed out that the execution of Lupin’s injectable pipeline and enduring trends in key products like Spiriva and Mira are crucial for the company’s margin expansion guidance for FY26.
The analyst from BofA Securities expressed caution regarding Lupin’s ability to maintain its profit margins, especially considering the high base set by Tolvaptan’s contribution to FY26. The concerns also include the anticipated investments in research and development, the Indian market, and specialty areas. According to the analyst, the current stock valuations, which stand at 25 times the projected earnings for FY27, already account for the benefits of the Tolvaptan launch.
In conclusion, BofA Securities raised its price objective for Lupin to INR1,930, up from INR1,900, while also increasing its earnings per share (EPS) estimates by 2-5% following the company’s recent financial disclosures. Despite these adjustments, the firm’s stance on the stock remains cautious, reiterating an Underperform rating.
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