In the Corona era, the demand for generic drugs may increase in the lupine share of the forma industry. This stock is also included in the portfolio of market veteran Rakesh Jhunjhunwala.
Beneficial stock
The share of the forma industry is likely to benefit Lupine due to increasing demand for generic drugs during the Corona period. At the same time, Rakesh Jhunjhunwala, a veteran investor in the stock market, has kept the stock of this company in his portfolio. Looking at its previous record, Lupin has given a return of 40% in the last one year. One, Rakesh Jhudjhunwala’s inclusion of this stock in his portfolio and secondly, this stock may remain in the headlines for the investors, in such a situation TV9 , Expert wanted to know how effective the investment in Lupine is.
Recently Lupin released the results for the last quarter of the last financial year ended March 31, 2021. It has achieved a net profit of Rs 1,216 crore in 2020-21 as compared to a loss of Rs 269 crore in FY 2019-20 and thus has returned to profit from losses from the company. During the Corona epidemic, the company’s profits have increased due to increased sales in the domestic and international markets.
40% return in 1 year
According to market analysts, many types of discounts are being given by the government on the medicines of Corona. These concessions will affect the stock prices of the company. Despite increasing demand for Generic medicine in India, the stock of the company can also be seen. Talking about the performance of the company for 1 year, Lupine’s share price was Rs 841.80 on 15 May 2020, which has now reached Rs 1176.46 on 14 May. That is, it has given 40% return to investors in 1 year.
Efforts to manage increase up to 19%
Market expert, Ambareesh Baliga told TV9 , That Lupine’s performance has been slightly lower in terms of projected figures, but the management is constantly working to improve its business and improve margins. In such a situation, you can see improvement in it. EBITDA margin can grow up to 19% in FY 2022. At the same time, it is expected to be up to 21-22% by FY 2023. Its target can be kept at 1375 for short term. Investors may consider long-term investment with caution in this.
The company returned to profit from losses
Market savvy and Rajeev Ranjan Jha, editor of Invest Manthan, told TV9 , Lupine has shown a profit of Rs 460 crores in its latest quarterly results, which is 18% higher than the profits achieved in the same quarter of the previous year. It has achieved a net profit of Rs 1,216 crore in 2020-21 as compared to a loss of Rs 269 crore in FY 2019-20. In such a situation, the company has returned to profit from losses. The company is continuously improving its margins. In such a situation, positive changes are being seen in it. However the company’s stock has taken advantage of this change. In future, you may have to wait a bit to get better returns in it.
Jhunjhunwala’s stake in Lupine
Rakesh Jhunjhunwala’s share in Lupine is about 1.6 percent. That is, they have about 72,45,605 shares. He invested in it in December 2020. At that time, Lupine’s stock was close to Rs 900. In such a situation, the investor Jhunjhunwala should not invest in it only because it is included in Jhunjhunwala’s portfolio, but rather make a strategy.
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