Lupin shares jump 4% in trade to hit an intraday high of Rs 1,712 on the NSE today on the back of a double upgrade from Kotak Institutional Equities. Kotak Institutional Equities revised its rating on Lupin from ‘Sell’ to ‘Add’ and substantially raised its target price from Rs 1,400 per share to Rs 1,805 per share. The upgrade reflects Kotak’s optimism about Lupin’s prospects, particularly in the crucial US market for the fiscal years 2025 and 2026.
In their report, Kotak highlighted Lupin’s potential to exceed market expectations in the US, despite anticipated challenges such as a decline in sales of Albuterol over the next two years. The research firm expressed confidence that Lupin’s robust pipeline of new products will mitigate any potential earnings downturn in fiscal year 2027 following a strong performance in fiscal year 2026.
“We have a bunch of products lined up to ensure limited earnings dip in FY27 after a strong FY26,” Kotak Institutional Equities noted in their report. They further raised their earnings per share (EPS) estimates for fiscal years 2025 through 2027 by 3% to 16%, emphasizing that their EPS estimates for fiscal years 2025 and 2026 are now 6% and 13% higher, respectively, than the Street consensus.
