Expert Views on Lupin; target of Rs 978
Expert Views on Lupin:
Top expert Prabhudas Lilladher views on Lupin. Due to improved earning visibility from the US market and easing regulatory problems, we allocated 24x PE (earlier 22 x) on FY 222E. For FY21E-22E, we are rising the EE by 31%, with a 10-15% rise in US profits (amongst others 5-7%) with a 200 basis points expansion of the EBITDA margin as a result of remediation costs economies as well as shifts in market mix.
We believe that regulation would make it possible for the LPC to make a strong comeback in the US market, which stabilizes the price environment, and trade war issues between the United States and China may give Indian Gx a chance.
We modify LPC to Buy, TP to Rs 978 (previously Rs 685).
Besides, on May 12th the share of Lupin Limited traded with the bullish trend. It traded with a gain of 2.60 points reached 851.90 INR with 0.31% up in NSE. Whereas in BSE, it traded with the bearish trend. It traded with a loss of 1.35 points reached 848.20 INR with 0.16% down.
Stock Market May 12th Update Sensex and Nifty
On the second day of the week, the stock market trading with the bearish trend. The Sensex traded with a loss of 190.10 points reached a 31,371.12 level with 0.60% down. Whereas, Nifty traded with a loss of 42.65 points reached 9,196.55 level with 0.46% down.
In the border market, the S&P BSE Midcap traded with a loss of 86.61 points reached 11,411.40 with 0.75% down. Whereas, S&P BSE SmallCap traded with a loss of 61.99 points reached 10,566.15 with 0.58% down. At the same time, Nifty bank traded with a loss of 87.65 points reached 18,862.85 with 0.46% down.
Top Gaining Stocks: Vedanta, NTPC, ITC, Bharti Airtel, Power Grid Corporation of India Ltd.
Top Losing Stocks: Reliance Industries, GAIL, Kotak Mahindra Bank, Asian Paints, and Cipla Limited.