Shares of Lupin surged nearly 3% on the BSE today, on Friday, reaching ₹2,057.30 intraday, following the company's announcement of receiving tentative approval from the US Food and Drug Administration (USFDA) for Sitagliptin and Metformin Hydrochloride Tablets. This development has amplified interest in Lupin as a strong prospect for share market investment, especially given its solid financial growth trajectory.
USFDA approval boosts Lupin’s share value
The approval of Lupin’s generic equivalent to Janumet by Merck Sharp & Dohme LLC marks a significant milestone for the Mumbai-based pharmaceutical giant. This medication, aimed at improving glycemic control in adults with type-2 diabetes, is expected to contribute significantly to Lupin’s North American sales. With the annual market value of this drug at $1,145 million in the US (IQVIA MAT September 2024), Lupin’s robust performance offers an excellent opportunity for those exploring share market investment.
Strong financial performance supports investment potential
Lupin’s financial growth during FY25 highlights its profitability. The company's consolidated net profit for Q2FY25 reached ₹852.63 crore, a 74.1% increase year-on-year, with revenues rising by 12.6% to ₹5,672.73 crore. North America contributed ₹1,971.1 crore in sales, accounting for 36% of global revenues, while domestic formulations grew by 18.8% to ₹2,009.6 crore.
For investors considering share market investment, Lupin's improving EBITDA margins—up from 19.4% to 25.2%—reflect its operational efficiency and resilience in a competitive market.
Lupin outperforms BSE Sensex year-to-date
Lupin shares have soared by 55% in 2024, outperforming the BSE Sensex, which has risen 9% during the same period. Over the past year, Lupin’s stock price has climbed 63%, compared to the Sensex's 18% growth. These figures highlight the company’s ability to generate returns for long-term investors, making it a promising option for share market investment.
Expanding global footprint enhances market prospects
The approval of Sitagliptin and Metformin Hydrochloride Tablets further strengthens Lupin’s presence in the North American market, which remains a critical revenue driver. Additionally, Lupin’s manufacturing base in Pithampur, India, showcases its capability to meet global regulatory standards, ensuring consistent product supply.
With a total market capitalisation of ₹93,591.21 crore, Lupin's stock is currently trading at a price-to-earnings ratio of 31.22, with an earnings-per-share value of ₹65.71. For those evaluating share market investment, these metrics indicate a stable and growth-oriented trajectory.
Invest safely
Lupin’s recent USFDA approval and strong financial performance reflect its robust growth potential. With consistent returns and a proven track record of navigating global markets, Lupin emerges as an attractive option for share market investment. Investors looking for stable pharmaceutical stocks should consider Lupin’s promising trajectory in the coming quarters.
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