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Pharmaceuticals & Biotechnology
Lupin is a prominent Pharmaceuticals company operating both in India and internationally, with the stock ticker LUPIN and a market capitalization of Rs. 92,615.7 Crores.
With operations that include drug discovery, development, production, and marketing, Lupin focuses on a diverse range of products. Their offerings include:
Lupin develops formulations across various therapeutic areas such as:
The company is also engaged in bio clinical research and operates through a network that includes labs and LupiMitra collection centers.
Founded in 1968 and headquartered in Mumbai, India, Lupin was originally known as Lupin Chemicals Limited until it rebranded in 2001. The company has reported a trailing 12 months revenue of Rs. 22,194.6 Crores and has demonstrated profitability with a profit of Rs. 2,892.1 Crores over the past four quarters.
Lupin also provides dividends to its investors, boasting a dividend yield of 0.38% per year, with a recent payout of Rs. 8 per share. However, it's worth noting that the company has diluted its shareholder holdings by 0.4% over the past three years. Additionally, Lupin has experienced notable revenue growth of 34.5% during this period.
Analysis of Lupin's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Pharmaceuticals | 100.0% | 5.7 kCr |
| Total | 5.7 kCr |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Growth: Good revenue growth. With 34.5% growth over past three years, the company is going strong.
Profitability: Recent profitability of 13% is a good sign.
Balance Sheet: Strong Balance Sheet.
Size: It is among the top 200 market size companies of india.
Momentum: Stock price has a strong positive momentum. Stock is up 3.8% in last 30 days.
No major cons observed.
Comprehensive comparison against sector averages
LUPIN metrics compared to Pharmaceuticals
| Category | LUPIN | Pharmaceuticals |
|---|---|---|
| PE | 31.86 | 37.19 |
| PS | 4.15 | 5.23 |
| Growth | 13.2 % | 7.1 % |
LUPIN vs Pharmaceuticals (2021 - 2025)
Summary of Lupin's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Major Points:
Financial Performance & Margins: Lupin achieved EBITDA margins of 24.3% in Q3 FY25, the highest in five years, and aims to sustain 22%-23% margins for FY25, with a target of 22.5%-23.5% in FY26. Gross margins improved to 69.4% (up 340 bps YoY) due to product mix, cost efficiencies, and lower input costs.
US Growth Drivers:
India Strategy:
R&D & Pipeline:
Expansion & Compliance:
ESG Initiatives:
Risks & Mitigations:
Summary: Lupin anticipates sustained growth via complex generics, US/India market execution, and margin discipline, while navigating regulatory and geopolitical challenges.
Last updated: Feb 25
1. Question: What are the upcoming limited competition launches in the US market over the next few quarters, and what are the expected timelines for products like Tolvaptan, Glucagon, Risperdal Consta, and Liraglutide?
Answer: Key products include Tolvaptan (expected in H1 FY26), Glucagon, Risperdal Consta, and Liraglutide, with injectables likely ramping up in H2 FY26. Approvals for Glucagon and Risperdal Consta are progressing, with Tolvaptan being the primary near-term driver.
2. Question: Why did the India business experience muted growth, particularly in respiratory therapy, despite the winter season?
Answer: Respiratory growth in India lagged due to market-wide shifts toward anti-infectives rather than inhalers. Chronic therapies (e.g., diabetes, cardiac) outperformed, but respiratory remains a long-term focus despite short-term softness.
3. Question: What drove the planned increase in R&D spending for Q4 FY25, and which projects are prioritized?
Answer: Higher Q4 R&D spend (~INR 1,800 crore annual guidance) focuses on nasal sprays (5 filings) and injectables, aligning with complex portfolio development. Two-thirds of R&D targets complex generics.
4. Question: What is the outlook for the tender business in India, and will it sustain in FY26?
Answer: The tender business (part of India's growth) is expected to remain flat in FY26, while core prescription sales (9.1% YoY for 9M) continue driving outperformance vs. the IPM.
5. Question: What is the status of Mirabegron's litigation, and will Lupin continue selling it at risk?
Answer: No immediate litigation changes; generic substitution and market share gains persist. A key patent decision is expected in early FY26, but FY25 sales remain unaffected.
6. Question: How long will PLI-related income continue, and what is its future impact?
Answer: PLI benefits (INR 149 crore in Q3) will decline next year but continue for three years, averaging ~INR 200 crore annually, with front-loaded claims in FY25.
7. Question: What explains the respiratory portfolio's underperformance in the US during peak season, and is there long-term risk?
Answer: Respiratory remains strong in the US/Europe (e.g., Albuterol, Xopenex®) with stable shares. India's slowdown is market-specific, but global respiratory focus (e.g., green propellants, new filings) underscores long-term commitment.
8. Question: What is the margin trajectory for the US business, considering cost optimization and potential tariffs?
Answer: US margins benefit from mix shifts to complex products and cost controls. FY25 EBITDA guidance is 22%-23.5%, with tariffs likely exempted due to industry advocacy; contingency plans include local manufacturing.
9. Question: How will Lupin expand its specialty business in the US, and what M&A strategy is planned?
Answer: Specialty growth focuses on respiratory (e.g., Xopenex®) and late-stage acquisitions. Lupin prioritizes India, specialty, and generics for capital allocation, targeting "bite-sized" deals (USD 200"“250 million).
10. Question: What are the expectations for Tolvaptan's market share and competition post-exclusivity?
Answer: Tolvaptan aims for 30"“40% share during exclusivity (H1 FY26) via channel partnerships. Post-exclusivity, 2"“3 competitors may enter, but its specialty/REMS profile ensures a longer tail vs. commoditized generics.
11. Question: How will Lupin sustain US growth post-FY26 amid pipeline uncertainties?
Answer: A robust complex generics pipeline (e.g., injectables, biosimilars) and slower competitor approvals (e.g., Spiriva's 5-year timeline) aim to offset exclusivity losses. FY26 targets USD 1 billion US sales.
12. Question: What is the strategy for Semaglutide (Canada/global) and green propellant inhalers?
Answer: Semaglutide injectables (partner-led) target FY26"“27 launches in Canada/India; oral versions are in-house. Green propellant MDIs (climate-friendly) begin filings in FY27, aligning with EU/US sustainability trends.
13. Question: How significant is the biosimilars pipeline, and will investments increase?
Answer: Biosimilars (e.g., Ranibizumab, Pegfilgrastim) focus on limited-competition markets. Regulatory easing (e.g., no interchangeability studies) and partnerships (e.g., Cordavis-style deals) drive selective, capital-efficient expansion.
14. Question: What drove EMEA's 20.9% YoY growth, and is it sustainable?
Answer: Growth stemmed from respiratory products Luforbec® (UK/Germany) and Nalcrom® (Germany). Expansion into 13 EU countries and new markets (e.g., Spain) supports sustained performance.
15. Question: What is Lupin's CDMO strategy, and is capex allocated?
Answer: Lupin Manufacturing Solutions (spun-out unit) is developing a CDMO strategy, with details expected next quarter. Capex will follow finalized plans, prioritizing niche APIs and injectables.
Understand Lupin ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Lupin Investments Pvt Ltd | 45.38% |
| HDFC Trustee Company Ltd-HDFC Balanced Advantage Fund | 3.22% |
| ICICI Prudential Value Discovery Fund | 2.63% |
| Nippon Life India Trustee Ltd. A/c Nippon India Growth Fund | 1.88% |
| SBI Long Term Equity Fund | 1.62% |
| Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis Midcap Fund | 1.54% |
| NPS Trust-A/c HDFC Pension Fund Management Limited Scheme E | 1.42% |
| Mirae Asset Large and Midcap Fund | 1.42% |
| SBI Life Insurance Co. Ltd. | 1.07% |
| Manju D Gupta | 0.85% |
| Nilesh D Gupta | 0.2% |
| Anuja Gupta | 0.16% |
| Desh Bandhu Gupta HUF | 0.14% |
| Vinita Gupta | 0.07% |
| Richa Gupta | 0.05% |
| Kavita Gupta | 0.04% |
| Veda Nilesh Gupta | 0.02% |
| Neel Deshbandhu Gupta | 0.01% |
| Manju D Gupta (As a Trustee of Gupta Family Trust) | 0% |
| Shefali Nath Gupta | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
|---|---|
| Market Cap | 96.06 kCr |
| Price/Earnings (Trailing) | 33.21 |
| Price/Sales (Trailing) | 4.33 |
| EV/EBITDA | 18.73 |
| Price/Free Cashflow | 36.31 |
| MarketCap/EBT | 26.56 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 22.19 kCr |
| Rev. Growth (Yr) | 11.38% |
| Rev. Growth (Qtr) | 1.86% |
| Earnings (TTM) | 2.89 kCr |
| Earnings Growth (Yr) | 38.82% |
| Earnings Growth (Qtr) | -0.07% |
Profitability | |
|---|---|
| Operating Margin | 16.3% |
| EBT Margin | 16.3% |
| Return on Equity | 18.4% |
| Return on Assets | 11.35% |
| Free Cashflow Yield | 2.75% |
Investor Care | |
|---|---|
| Dividend Yield | 0.38% |
| Dividend/Share (TTM) | 8 |
| Shares Dilution (1Y) | 0.20% |
| Diluted EPS (TTM) | 62.71 |
Financial Health | |
|---|---|
| Current Ratio | 1.88 |
| Debt/Equity | 0.2 |
| Debt/Cashflow | 1.31 |
Detailed comparison of Lupin against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| SUNPHARMA | Sun Pharmaceutical IndustriesPharmaceuticals | 4.42 LCr | 53.56 kCr | +6.16% | +22.24% | 38.52 | 8.25 | +10.28% | +28.38% |
| DIVISLAB | Divi's LabPharmaceuticals | 1.6 LCr | 9.42 kCr | +4.55% | +50.34% | 77.55 | 17.01 | +20.50% | +49.46% |
| CIPLA | CiplaPharmaceuticals | 1.26 LCr | 27.8 kCr | +7.81% | +10.34% | 25.18 | 4.52 | +7.01% | +33.22% |
| TORNTPHARM | Torrent PharmaceuticalsPharmaceuticals | 1.13 LCr | 11.37 kCr | +3.32% | +23.93% | 60.62 | 9.92 | +8.22% | +24.63% |
| DRREDDY | Dr. Reddy's LabPharmaceuticals | 1 LCr | 32.07 kCr | +4.76% | -4.14% | 18.36 | 3.12 | +14.31% | +4.21% |
| AUROPHARMA | Aurobindo PharmaPharmaceuticals | 72.44 kCr | 31.57 kCr | +7.47% | +10.24% | 20.77 | 2.29 | +10.80% | +26.04% |