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H i g h e r t a x a t i o n c l o u d s s t r o n g p e r f o r m a n c e …
Lupin’s Q3FY12 results were a mixed bag. Revenues increased 20.4%
YoY to | 1818.9 crore slightly above our estimate of | 1768.3 crore on the
back of healthy growth from across geographies. The surprise for us was
30% growth in the domestic formulations business to | 519.8 crore vs.
moderate 16% growth seen in AIOCD secondary data. The company
booked forex loss of | 36 crore during the quarter, which was added in
the other expenditure. Despite the forex loss, EBITDA margins increased
80 bps to 20.1% YoY (higher than our expectation of 20.5%) due to a
better product mix. Despite 25.6% growth in EBITDA, net profit grew
marginally by 5% to | 235.1 crore (our expectation: | 251 crore) on the
back of higher taxation. We are maintaining our BUY rating on the stock.
ƒ Like to like domestic formulation grows by 23% YoY
The domestic formulation business registered healthy growth of
30% YoY to | 519.8 crore on a strong recovery in anti-infectives and
gynaecology and continued traction from CVS and anti-diabetics.
The products, which were launched in a tie-up with Eli Lilly clocked
around | 27 crore for the quarter. Excluding these products, the
domestic formulation business grew ~23% YoY.
ƒ Expects good traction in US
Lupin is planning to launch 25 products in the US market including
10 OCs. The key product launches in the US market for FY13 would
be Ziprasidone (four player market, March 2012), Lamivudine &
zidovudine tablets (May 2012), fenofibrate tablets (H2FY13) and OC
products like Yaz and Yasmin (January 2013).
V a l u a t i o n
Lupin continues to register strong growth across geographies, which has
been the hallmark for the company. Incremental product launches in the
US and other markets will further strengthen its reach and provide
cushion against unexpected spikes. We expect sales (including I-Rom),
EBITDA and profits to grow at a CAGR of 22%, 25% and 20%,
respectively, between FY11 and FY13E. We are maintaining our target
price of | 530 based on 19x FY13E EPS of | 27.9.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
H i g h e r t a x a t i o n c l o u d s s t r o n g p e r f o r m a n c e …
Lupin’s Q3FY12 results were a mixed bag. Revenues increased 20.4%
YoY to | 1818.9 crore slightly above our estimate of | 1768.3 crore on the
back of healthy growth from across geographies. The surprise for us was
30% growth in the domestic formulations business to | 519.8 crore vs.
moderate 16% growth seen in AIOCD secondary data. The company
booked forex loss of | 36 crore during the quarter, which was added in
the other expenditure. Despite the forex loss, EBITDA margins increased
80 bps to 20.1% YoY (higher than our expectation of 20.5%) due to a
better product mix. Despite 25.6% growth in EBITDA, net profit grew
marginally by 5% to | 235.1 crore (our expectation: | 251 crore) on the
back of higher taxation. We are maintaining our BUY rating on the stock.
ƒ Like to like domestic formulation grows by 23% YoY
The domestic formulation business registered healthy growth of
30% YoY to | 519.8 crore on a strong recovery in anti-infectives and
gynaecology and continued traction from CVS and anti-diabetics.
The products, which were launched in a tie-up with Eli Lilly clocked
around | 27 crore for the quarter. Excluding these products, the
domestic formulation business grew ~23% YoY.
ƒ Expects good traction in US
Lupin is planning to launch 25 products in the US market including
10 OCs. The key product launches in the US market for FY13 would
be Ziprasidone (four player market, March 2012), Lamivudine &
zidovudine tablets (May 2012), fenofibrate tablets (H2FY13) and OC
products like Yaz and Yasmin (January 2013).
V a l u a t i o n
Lupin continues to register strong growth across geographies, which has
been the hallmark for the company. Incremental product launches in the
US and other markets will further strengthen its reach and provide
cushion against unexpected spikes. We expect sales (including I-Rom),
EBITDA and profits to grow at a CAGR of 22%, 25% and 20%,
respectively, between FY11 and FY13E. We are maintaining our target
price of | 530 based on 19x FY13E EPS of | 27.9.
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