Rakesh Jhunjhunwala-backed Lupin shares fall 7% on weaker than expected Q1 results - this brokerage still BULLISH - check target here
The shares of Lupin on Wednesday slumped by around 7 per cent to Rs 1043.15 a share on the BSE intraday trade today, despite good but below streets expectations first-quarter numbers yesterday
The shares of Lupin on Wednesday slumped by around 7 per cent to Rs 1043.15 a share on the BSE intraday trade today, despite good but below street’s expectations first-quarter numbers yesterday
The pharma major reported a four-fold jump in its profit to Rs 548 crore in the June-ended quarter of the financial year 2021-22, as compared to Rs 108 crore in the same period year ago, the company reported in its filing on Tuesday.
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The sales of the company during Q1 grew by over 22 per cent to Rs 4237 crore year-on-year basis, while its EBITDA margin surged by 810 basis points (bps) to 23.4 per cent in Q1FY22 from 15.3 per cent in Q1FY21, Lupin reported in its exchange filing.
This stock is one of the favourites of an ace investor Rakesh Jhunjhunwala with an investment of Rs 800 crore, he held 7,245,605 shares, which comprises of 1.6 per cent, as per the June-end quarter shareholding pattern available on BSE.
The shares of the pharma major opened at day’s high level, however, declined to trade near day’s low. It is trading over 6 per cent lower to Rs 1050 per share on the BSE, as compared to a 0.28 per cent decline in the S&P BSE Sensex at around 10:25 pm on Wednesday.
The scrip has also been contributing most for the Pharma Index’s dip, along with other heavyweight’s such as Sun Pharma and Divis Lab, which were the top losers at the market open today.
A weak quarter for Lupin, Nomura says as US business falls materially on a sequential basis. It points out all the important parameters such as sales, PAT and EBITDA were below prediction, however, maintains a Buy rating with a price target of Rs 1399 per share.
Nomura expects, Lupin significantly will get uplifted in financial performance in the second half of FY22. And, the brokerage's estimates have factored in licensing income of $50 million from Boehringer Ingelheim.
The pharma company in its statement had reported the Gross Profit was buoyed by the USD 50 mn received from Boehringer Ingelheim for achieving key milestones for its novel MEK inhibitor compound collaboration
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