Ranjit Kapadia, Head – Research, PCG, Prabhudas Lilladher, is bullish on Lupin Labs. Here is how views the stock ( Rakesh Jhunjhunwala is holding LUPIN shares)
Ranjit Kapadia likes Lupin Labs ( LUPIN is in the portfolio of Rakesh Jhunjhunwala) and has advised to investors too look at it at this point. “Lupin has given consistent returns over the last three months and also over a one-year period,” he said. “However, in the last one month, the fall in the stock price was in line with the Sensex. But overall, the returns in the last three months and the last 12 months were far better than the Sensex,” he added.
As per Kapadia, the company has got a strong presence in the domestic market as well as the US and the Japanese market. “The US is its largest market. About 50% of the global pharma market is in the US, and Japan is the second largest market after the US. So, the company has a strong presence in all these three regions. The growth rates are much higher than the industry growth rates,” he said.
Kapadia said the company is doing exceedingly well in the domestic market. “They have grown by about 24% during the last quarter, and in the US market they have grown by about 85%, and in the Japanese market the growth rate was 24%. So, these excellent growth rates have taken the topline growth to 41% during the quarter. There was a margin improvement of 200 basis points from 17.1% to 19.1%, and the bottomline grew by about 53% during the quarter,” he said.
As per Sep 08 share holding pattern, Rakesh jhunjhunwala is holding 1,661,881 and 1,130,254 shares in the name of Jhunjhunwala Rakesh Radheshyam and Jhunjhunwala Rekha Rakesh respectively