The shares of this large-cap pharma stock engaged in the development and commercialization of a wide range of branded and generic formulations, API, and biotechnology products after the company reported a 72 percent year-on-year increase in net profits and revenue growth in its recently released quarterly results.
Share Price Movement
The share price of Lupin Ltd opened at Rs. 2144 and touched a high of Rs.2154 per share on Friday’s intraday trade, rising 2 percent from its previous close of Rs.2110.55 per share. However, the shares have adjusted since then and are now trading at Rs.2126.80 each.
What Happened
The stock movement was due to a result of an earnings update released by the company. The company posted a significant increase in net profits and a jump in revenue in Q2FY25.
According to its recent filing, In Q2FY25, Lupin Ltd reported a 12.58 percent increase in revenue to Rs.5,673 crore in Q2FY25, compared to Rs.5,039 crore in Q2FY24. Furthermore, quarterly, the company saw an increase of 1.3 percent in revenue from Rs.5,600 crore in Q1FY25.
In the same period, the company reported a significant increase in net profit of 73 percent to Rs.859 crore in Q2FY25, up from Rs.495 crore in Q2FY24 and 6.57 percent from Rs.806 crore in Q1FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 15.34 percent, while return on equity (ROE) is at 14.47 percent. The company has a strong current ratio of 1.88 and a debt-to-equity ratio of 0.28 in FY24.
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Revenue Mix
The company earns 37 percent from India, 36 percent from North America, 10 percent from EMEA, 9 percent from Growth Markets, 5 percent from Asia Pacific, and 3 percent from the rest of the world as of Q2FY25.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 46.96 percent stake in Lupin, Foreign Institutional Investors (FII) holding around 21.50 percent, Domestic Institutional investors (DII) standing at 25.10 percent, Government stake at 0.01 percent and public holdings standing at 6.44 percent.
About the company
Lupin Limited is a global pharmaceutical company based in India specializing in the development and manufacturing of generic and branded formulations, biotechnology products, and active pharmaceutical ingredients (APIs).
Their business model focuses on innovation-driven research and development across various therapeutic areas, which include cardiovascular, anti-diabetic, and respiratory segments. Lupin operates over 15 manufacturing facilities worldwide and distributes products in more than 100 markets. The company aims to address unmet medical needs through its extensive portfolio of complex generics and biosimilars. They are 3rd in leadership in the US Market and 1st in 51 products, 3rd in 107 products.
Written by – Santhosh S
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