Lupin, a prominent pharmaceutical player, experienced a notable surge in its share price, climbing over 5% during morning trading on BSE on July 4. This rise came on the heels of a double upgrade from Kotak Securities, a leading brokerage firm.
Kotak Institutional Equities upgraded Lupin’s stock rating from ‘sell’ to ‘add’ and revised its fair value target from ₹1,400 to ₹1,805, indicating a potential upside of nearly 11% from the previous day’s closing price. The brokerage highlighted Lupin’s robust US portfolio, projecting that it is well-positioned to exceed market expectations in fiscal years 2025 and 2026. Specifically, Kotak expects significant contributions from products like gSpiriva, Albuterol, gMyrbetriq, and Tolvaptan to drive strong sales growth in the US market.
In terms of financial outlook, Kotak raised its earnings per share (EPS) estimates for fiscal years 2025 to 2027 by 3-16%, reflecting optimism about Lupin’s revenue potential. The brokerage also adjusted Lupin’s price-to-earnings (PE) multiple upwards, citing improved medium-term sales and margin prospects.
Despite the recent surge, Lupin’s stock has faced resistance around the ₹1,700 to ₹1,710 range, prompting caution among analysts like Jigar S. Patel from Anand Rathi Share and Stock Brokers. Patel advised traders to consider booking profits within this range and suggested waiting for a decisive daily close above ₹1,735 for potential confirmation of a breakout and further upward momentum.
Lupin’s shares have shown strong performance over the past year, gaining approximately 83% from its 52-week low. The stock’s 52-week high stands at ₹1,727.90, reached in May this year.
Disclaimer: Analyst views and recommendations mentioned above are sourced from individual brokerage firms and experts, and investors are advised to consult with financial professionals before making investment decisions.
