Lupin Limited is expected to show strong growth in July-September quarter due to US business. Profit is seen rising 80 per cent year on year to Rs 736.5 crores but interest cost may limit bottomline growth, according to analysts polled by CNBC-TV18. Revenue is likely to jump 32.4 per cent to Rs 4,938.1 crores, led by consolidation of Gavis (acquired in 2015) and buoyant growth in US generics (driven by diabetes drugs Glumetza & Fortamet generic). However, sequential US growth can be sluggish due to higher competition in Fortamet and Glumetza. US contribution stood at 51 per cent to sales.
Analysts expect India business to recover to grow at 12 to 14 per cent year on year to around Rs 950 to 1,000 crores for the quarter while Japan may grow around 12 to 15 per cent in Yen. Operating profit is seen rising 83 per cent year-on-year to Rs 1,229.5 crores and margin may expand 780 basis points to 28 per cent in Q2. Commentary on Goa plant resolution will be closely watched. The second set of observations is still outstanding. The company received establishment inspection report from the USFDA for first set of observations and it is awaiting re-inspection. The stock lost 15 per cent year to date, the worst performing pharma share within the Nifty year to date due to pricing pressure in United States, slow approval rate of key drug opportunities and overhang of observations on Goa plant.
Lupin is one of the top 500 stocks recommended by the research and analysis team of Dynamic Levels. Lupin share price closed at Rs 1,507.60 on NSE, down by 1.09 per cent or 16.50 points. The share price opened at Rs 1,530.00 from yesterday’s closing of Rs 1,518.60.
Get the most important support and resistance levels of the share at Lupin share price forecast.
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