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500257: US FDA Approvals And Oncology Capacity Expansion Will Drive Shares Higher

Emerging Markets And Chronic Therapies Will Expand Global Horizons

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500257
AnalystConsensusTarget
Not Invested
Published 18 Nov 2024

Update shared on 09 Dec 2025

Fair value Increased 0.12%
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Analysts have nudged their price target on Lupin slightly higher to approximately ₹2,281 from about ₹2,278, citing marginally stronger expectations for revenue growth, profit margins, and future valuation multiples.

What's in the News

  • Lupin signed an exclusive licensing deal with Valorum Biologics for its pegfilgrastim biosimilar Armlupeg in the U.S., retaining manufacturing while earning upfront and royalty payments on sales (client announcement).
  • The company is in early stage talks, alongside private equity players EQT and TPG, to form a consortium bid for UK based vitamins maker Vitabiotics in a potential £1 billion transaction (M&A discussions).
  • Multiple Lupin facilities, including Nagpur, Chhatrapati Sambhajinagar, and Pithampur Unit 3, recently cleared U.S. FDA inspections with favorable outcomes, reinforcing compliance credentials (regulatory filings).
  • Lupin expanded its manufacturing footprint with a new oncology block at its Vizag site in India and announced a $250 million investment in a new respiratory medicines plant in Coral Springs, Florida (business expansions).
  • The company continued to broaden its U.S. portfolio with launches and approvals across key therapies, including long acting risperidone, cardiometabolic and HIV treatments, urea cycle disorder therapy, and pediatric anticoagulants (product announcements).

Valuation Changes

  • Fair Value Estimate has risen slightly to around ₹2,281 from about ₹2,278, reflecting marginally upgraded assumptions.
  • Discount Rate is unchanged at approximately 12.76 percent, indicating no shift in perceived risk profile.
  • Revenue Growth has edged up modestly to about 6.36 percent from roughly 6.35 percent, incorporating slightly stronger top line expectations.
  • Net Profit Margin has increased very slightly to around 14.23 percent from about 14.23 percent, suggesting minimal improvement in profitability assumptions.
  • Future P/E Multiple has risen marginally to roughly 35.35x from about 35.32x, implying a small uptick in anticipated valuation levels.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.