BSE:500257

Stock Analysis Report

Executive Summary

Lupin Limited, a pharmaceutical company, develops, produces, and markets a range of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs) worldwide.

Snowflake

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Lupin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500257 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.5%

500257

1.1%

IN Pharmaceuticals

-0.06%

IN Market


1 Year Return

-8.5%

500257

-9.5%

IN Pharmaceuticals

4.9%

IN Market

Return vs Industry: 500257 exceeded the Indian Pharmaceuticals industry which returned -9.5% over the past year.

Return vs Market: 500257 underperformed the Indian Market which returned 4.9% over the past year.


Shareholder returns

500257IndustryMarket
7 Day6.5%1.1%-0.06%
30 Day5.3%6.2%1.9%
90 Day5.5%7.2%9.6%
1 Year-7.9%-8.5%-8.8%-9.5%6.9%4.9%
3 Year-46.7%-47.7%-14.0%-15.8%38.5%31.5%
5 Year-44.5%-46.0%-10.7%-13.4%41.8%29.1%

Price Volatility Vs. Market

How volatile is Lupin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lupin undervalued compared to its fair value and its price relative to the market?

112.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500257 (₹777.6) is trading above our estimate of fair value (₹467.53)

Significantly Below Fair Value: 500257 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500257 is poor value based on its PE Ratio (112.1x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: 500257 is poor value based on its PE Ratio (112.1x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: 500257 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 500257 is overvalued based on its PB Ratio (2.6x) compared to the IN Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

How is Lupin forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500257's forecast earnings growth (35.5% per year) is above the savings rate (7.6%).

Earnings vs Market: 500257's earnings (35.5% per year) are forecast to grow faster than the Indian market (18.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500257's revenue (8.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 500257's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500257's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Lupin performed over the past 5 years?

-33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500257 has large one-off items impacting its financial results.

Growing Profit Margin: 500257 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 500257's earnings have declined by -33.5% per year over the past 5 years.

Accelerating Growth: 500257 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 500257 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (20.1%).


Return on Equity

High ROE: 500257's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lupin's financial position?


Financial Position Analysis

Short Term Liabilities: 500257's short term assets (₹151.3B) exceeds its short term liabilities (₹72.9B)

Long Term Liabilities: 500257's short term assets (₹151.3B) exceeds its long term liabilities (81.9B)


Debt to Equity History and Analysis

Debt Level: 500257's debt to equity ratio (63.4%) is considered high.

Reducing Debt: 500257's debt to equity ratio has increased from 6% to 63.4% over the past 5 years.

Debt Coverage: 500257's debt is well covered by operating cash flow (33.6%).

Interest Coverage: 500257's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet

Inventory Level: 500257 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500257's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Lupin's current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: 500257's dividend (0.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: 500257's dividend (0.64%) is low compared to the top 25% of dividend payers in the Indian market (2.43%).


Stability and Growth of Payments

Stable Dividend: 500257's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500257's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.1%), 500257's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500257's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

What is the CEO of Lupin's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Vinita Gupta (51yo)

6.2yrs

Tenure

₹15,100,000

Compensation

Ms. Vinita D. Gupta has been the Chief Executive Officer at Lupin Limited since September 1, 2013. Ms. Gupta serves as an Executive Director of Lupin Limited. She has been the Chairman and Chief Executive  ...


CEO Compensation Analysis

Compensation vs Market: Vinita's total compensation ($USD210.11K) is below average for companies of similar size in the Indian market ($USD710.65K).

Compensation vs Earnings: Vinita's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: 500257's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

70.5yo

Average Age

Experienced Board: 500257's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: 500257 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹2,548,87530 Sep 19
Nilesh Gupta
EntityIndividual
Role
Member of the Board of Directors
MD & Executive Director
Shares3,500
Max Price₹728.25
Buy₹10,007,96819 Aug 19
Nilesh Gupta
EntityIndividual
Role
Member of the Board of Directors
MD & Executive Director
Shares13,600
Max Price₹735.88
Buy₹2,507,93414 Aug 19
Nilesh Gupta
EntityIndividual
Role
Member of the Board of Directors
MD & Executive Director
Shares3,300
Max Price₹759.98
Sell₹1,165,50004 Jul 19
Girij Singh
EntityIndividual
Shares1,500
Max Price₹788.33
Sell₹1,106,46827 Jun 19
T. Vijaya Kumar
EntityIndividual
Shares1,500
Max Price₹737.65
Sell₹536,39627 Jun 19
Gautam Pareek
EntityIndividual
Shares700
Max Price₹766.28
Sell₹3,805,00028 May 19
Alok Ghosh
EntityIndividual
Shares5,000
Max Price₹761.00
Sell₹2,453,45124 May 19
Gautam Pareek
EntityIndividual
Shares3,200
Max Price₹773.00
Sell₹1,603,69319 Feb 19
Milind Sindkhedkar
EntityIndividual
Shares2,000
Max Price₹801.85
Sell₹1,286,45515 Feb 19
Deepak Didwania
EntityIndividual
Shares1,487
Max Price₹865.13
Sell₹2,184,21107 Dec 18
T. Vijaya Kumar
EntityIndividual
Shares2,500
Max Price₹873.68

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kamal Sharma (70yo)

    Vice Chairman

    • Tenure: 6.2yrs
    • Compensation: ₹175.91m
  • Vinita Gupta (51yo)

    CEO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: ₹15.10m
  • Sunil Makharia

    Interim CFO & President of Finance

    • Tenure: 0.4yrs
    • Compensation: ₹37.63m
  • Nilesh Gupta

    MD & Executive Director

    • Tenure: 11.1yrs
    • Compensation: ₹18.12m
  • Arvind Bothra

    Head of Investor Relations

    • Tenure: 0yrs
  • Rajvardhan Satam

    Company Secretary

    • Tenure: 11.5yrs
    • Compensation: ₹8.56m
  • Sofia Mumtaz

    Head of Pipeline Management & Legal

    • Tenure: 0yrs
  • Lalit Singal (51yo)

    Head of Finance & Accounts

    • Tenure: 0yrs
  • Johnny Mikell

    President & Global Head of Quality

    • Tenure: 0.8yrs
  • Sreeji Gopinathan

    Chief Information Officer

    • Tenure: 0.08yrs

Board Members

  • Jean-Luc Bélingard (71yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: ₹7.02m
  • Richard Zahn (67yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: ₹7.08m
  • Rajendra Shah (88yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: ₹3.68m
  • Kamalaksha Mada (86yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹3.37m
  • Kamal Sharma (70yo)

    Vice Chairman

    • Tenure: 6.2yrs
    • Compensation: ₹175.91m
  • Vinita Gupta (51yo)

    CEO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: ₹15.10m
  • Manju Gupta (75yo)

    Chairman

    • Tenure: 2.3yrs
    • Compensation: ₹3.60m
  • Nilesh Gupta

    MD & Executive Director

    • Tenure: 11.1yrs
    • Compensation: ₹18.12m
  • Dileep Choksi (70yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: ₹3.20m
  • Franceso Granata

    Member of Strategic Advisory Board

    • Tenure: 0yrs

Company Information

Lupin Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lupin Limited
  • Ticker: 500257
  • Exchange: BSE
  • Founded: 1968
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹338.397b
  • Shares outstanding: 452.73m
  • Website: https://www.lupin.com

Number of Employees


Location

  • Lupin Limited
  • B/4 Laxmi Towers
  • Bandra Kurla Complex
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500257BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1999
LUPINNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1999

Biography

Lupin Limited, a pharmaceutical company, develops, produces, and markets a range of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs) worldwide. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 12:36
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.