Jefferies has maintained a ‘Hold’ rating on Lupin, lowering its target price to ₹2,200 per share from the previous ₹2,400, reflecting a cautious stance on the company’s future growth prospects.
Key takeaways from the report:
- Lupin’s US and EMEA businesses continue to show strength, supporting overall performance.
- Branded generics growth in India remains muted, posing a challenge for domestic market expansion.
- The company has provided margin guidance of 23-23.5% for FY26, indicating stable profitability expectations.
- Lupin’s US product pipeline for FY26 remains strong, with key launches expected to drive revenue growth.
- However, Jefferies warns that FY26 could be a “cliff year” as several key products may face increased competition, potentially impacting future earnings.
While Lupin has a robust US pipeline and strong margins, Jefferies remains cautious due to rising competition risks and slow branded generics growth in India, prompting a neutral outlook on the stock.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.