For 3QFY2019, sales came in at `4,168cr v/s. `3,900cr in 3QFY2018, a yoy growth
of 6.9%. On operating front, the EBITDA margins came in at 8.6% v/s. 15.7% in
3QFY2018, mainly on the back of lower than expected sales during the quarter &
dip in the gross margins. Thus, the Adj. PAT came in at `188cr v/s. `222cr in
3QFY2018, a yoy de-growth of 15.2%. During the quarter, the company booked
NCE income of `210.3cr, which posted other income; while it also posted extraordinary expenses of `342.2cr which lead company to report losses. We are
Neutral on the stock.

Outlook and valuation: We expect Lupin to post net sales CAGR of 14.4% to
`23,292cr over FY2018–21E. The earnings would come under pressure, on back of
pressure on the OPM. The stock trades at 25.7x its FY2020E earnings respectively.
We recommend a neutral rating on the stock

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