Motilal Oswal Financial Services (MOSL) has reaffirmed its ‘Neutral’ stance on Lupin, while cutting the target price to ₹2,000 from ₹2,140, pointing to limited upside from current levels.
US market execution boosts Q1 performance
The brokerage highlighted that Lupin’s earnings surprise was largely driven by better execution in the US market, which continues to be a key growth driver. As a result, MOSL raised its earnings estimates by 5.5% for FY26 and 2% for FY27.
Profit growth estimates revised upward
MOSL expects EBITDA and PAT CAGR of 14% and 16%, respectively, over FY25–27. The EBITDA margin is projected at 24–25% for FY26, underlining robust operating leverage. Lupin is currently valued at 22x 12-month forward earnings.
Caution on valuations despite revenue strength
While the brokerage acknowledges Lupin’s strong revenue growth guidance, it noted that the stock’s current price already factors in much of the optimism, leaving limited upside from here.
Disclaimer: The views expressed in this article are those of the brokerage firm and do not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
