Buy Lupin for target Rs.1760 -Karvy
December 31, 2009 by admin
Filed under Brokerage Recommendations
Karvy Stock Broking has recommended outperformer rating on Lupin with a target of Rs 1760, in its December 31, 2009 research report.
“Lupin’s branded play began with the launch of Suprax in the US market in February 2004. Since then the company has been able to make Suprax a US$74 mn brand and has been able to expand its franchise with the paedriatic doctors in the US. Over the years the company has been able to build a strong brand franchise for Suprax. Lupin has expanded the lifecycle of the product by creating line extensions. The Suprax basket comprises 100mg, 200 mg suspension and 400 mg tablets. Lupin is now expanding further into the high value Cardiovascular (CVS) and respiratory products market in the US.”
“The stock is currently quoting at 22x FY 2010E and 15.9x FY 2011E. As a result of the upgrade in EPS we upgrade our multiple from 17.4x to 19x FY 2011 and revise our price target upwards by 12.2 % to Rs 1,760 and continue to rate the stock as Outperformer.”
Source: Moneycontrol
