(Reuters) – Indian generic drugmaker Lupin reported a bigger-than-expected rise in second-quarter profit on Thursday, driven by strong demand for its respiratory and diabetes management drugs.
Consolidated net profit of the company, which makes biosimilars and active pharmaceutical ingredients, rose to 8.53 billion rupees (about $101 million) for the quarter ended Sept. 30, up about 74% from a year earlier and higher than analysts’ estimates of 7.29 billion rupees, as per data compiled by LSEG.
Revenue from operations grew 11.3% to 54.97 billion rupees.
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KEY CONTEXT
Indian generic drugmakers earn a significant share of their revenue from the U.S., which is the world’s biggest pharmaceutical market.
Larger rivals Cipla and Sun Pharma beat their second-quarter profit estimates on strong demand in the U.S.
However, generic drugmakers have also been grappling with lower prices of their drugs amid stiff competition.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth rating* analysts price yield
(%) target** (%)
Lupin Ltd 30.26 18.58 11.61 34.24 Hold 32 1.09 0.37
Alembic 27.95 17.41 11.06 20.74 Hold 9 1.00 0.96
Pharmaceuticals
Ltd
Zydus 21.32 15.17 9.94 9.15 Hold 27 0.87 0.30
Lifesciences Ltd
Cipla Ltd 25.90 16.39 8.18 9.91 Hold 33 0.97 0.82
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY TO SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 84.3070 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)
