Lupin trades above Rs 1,000 for the first time since Nov 2017

Amid the ongoing rally in the healthcare sector, shares of Lupin moved above Rs 1,000 mark for the first time since November 7, 2017.

The scrip has gained 102 per cent since March 13 this year when it scaled a 52-week low of Rs 505.

The stock today hit its 52-week high of Rs 1,018.80 on the BSE.

In the recent developments, the pharma major last week reported a 64.72 per cent decline in its consolidated net profit to Rs 106.90 crore for the quarter to June 2020, hit by the Covid-19 pandemic.

It had posted a net profit of Rs 303.05 crore for the corresponding period of the previous fiscal.

The company on August 5 also announced the launch of its Favipiravir drug under the brand name 'Covihalt' for the treatment patients with mild to moderate Covid-19 symptoms at Rs 49 per tablet in India.

Commenting on the quarterly results, brokerage Motilal Oswal Financial Services said, “Lupin’s Q1FY21 PAT was the lowest over the past four years. The significant cost savings benefit was offset by the sharp decline in US sales and higher employee cost. However, based on niche launches like g-albuterol sulfate in the US, biosimilar Enbrel in the EU and gradually improving outlook for domestic formulation (DF), we expect better earnings prospects going forward.”

The company’s total revenue from operations stood at Rs 3,527.9 crore for the quarter under consideration. It was Rs 3,877.7 crore for the same period a year ago.

Karvy Stock Broking in its report on August 10 gave ‘Sell’ call to Lupin with a price target of Rs 898.

“We downgrade our EBITDA margins by 150 bps and 100 bps to 17 per cent and 19 per cent, respectively, for FY21E and FY22E due to lower gross margins and higher overheads,” Karvy said.