Lupin Stock Analysis
Fundamental and Technical Analysis of Lupin
STOCK ANALYSIS
8/11/20256 min read
About Company
Lupin Limited is a large Indian pharmaceutical company based in Mumbai that manufactures medicines used to treat various health conditions, including infections, heart diseases, diabetes, asthma, and tuberculosis. It was founded in 1968 by Dr. Desh Bandhu Gupta with a small loan from his wife. The company started by making vitamins and tuberculosis drugs and has grown into a global business serving patients in over 100 countries. Lupin focuses on affordable and quality medicines, including generic versions of brand-name drugs, and has manufacturing plants and research centers worldwide. It is known for strong research and development, especially in areas like cardiovascular and respiratory treatments. Lupin also works on improving communities through its social programs and is committed to sustainability and corporate responsibility.
Business Segments
Lupin Limited's business segments primarily include formulations, which account for about 95% of its revenue, and Active Pharmaceutical Ingredients (APIs), contributing around 5%. The formulations segment spans key markets such as India, North America, other developed markets, and emerging markets. In India, Lupin focuses on chronic therapies like cardiology, anti-diabetes, respiratory, gastrointestinal, and anti-infectives, besides consumer healthcare and trade generics. North America, especially the U.S., is a critical growth area with a strong presence in complex generics, respiratory, injectables, and specialty products. Lupin also operates in the global API segment with leadership in cephalosporins, cardiovascular, and anti-tuberculosis APIs, supplying both internal needs and external markets through its Contract Development and Manufacturing Organization strategy.
Company's Facility
Lupin Limited operates 15 state-of-the-art manufacturing facilities spread across India, the United States, Brazil, and Mexico. These facilities are designed with advanced technology, automation, and strict quality control to produce affordable and high-quality medicines. In India alone, Lupin has multiple plants in locations such as Aurangabad, Ankleshwar, Mandideep, Pune, Tarapur, Goa, Jammu, Vadodara, Indore, Nagpur, Visakhapatnam, and Sikkim. The U.S. manufacturing includes a key facility in Somerset, New Jersey, which recently received approval from the U.S. FDA. Lupin's global manufacturing footprint supports its production of formulations and active pharmaceutical ingredients, emphasizing lean manufacturing, compliance with regulations, and sustainability. Alongside manufacturing sites, Lupin has seven research centers worldwide fueling innovation and product development.
Production Capacity
Lupin Limited has a robust and expanding production capacity with 15 world-class manufacturing facilities across India, the United States, Brazil, and Mexico. These sites are equipped with advanced technology, automation, and strict quality control to ensure the production of over 20 billion formulation units and more than 3,700 metric tons of Active Pharmaceutical Ingredients (APIs) annually. Recent capacity expansions include new high-potency product manufacturing blocks, a state-of-the-art metered dose inhaler plant, and additional facilities for oral solid dose formulations and injectables, reflecting Lupin’s focus on complex generics and biotechnology products. Their manufacturing network operates under stringent global standards, including 14 U.S. FDA-approved units, supporting both large-scale and specialized production needs. Lupin’s investment in smart, agile systems and sustainability aims to maintain high product quality, supply resilience, and meet growing global demand efficiently.
Future Plans
Looking ahead, Lupin has set ambitious plans for the future. It targets strong double-digit growth overall and in the U.S. market for FY26, with an EBITDA margin goal of 24-25%. The company plans to launch over 15 new products in FY26, focusing substantially on complex generics. Over the next five years, Lupin aims to introduce more than 80 products in India, strengthening its position in key therapy areas. It is also working on launching biosimilars and expanding its specialty and branded generics portfolio globally. Additionally, Lupin is responding to regulatory challenges, such as aiming for the launch of Dulera in FY27 or early FY28 following a regulatory review. The company continues to prioritize innovation, compliance, technology, and sustainability to sustain long-term growth. Lupin’s strategic initiatives include broadening its presence in key markets, enhancing product complexity, and driving profitability through operational excellence and cost management, positioning it well for robust growth in the coming years.
Financial Prospects of The Company
Company's Valuation & Stock Price
The market valuation of the company is 89,020 crores and stock price is 1,949.
Price-to-Earning Ratio (P/E Ratio)
The price-to-earnings value of the company is 24.1
Earning Per Share (EPS)
The earnings per share is 81.0
Book Value
The book value of the company is 377
Price to Book Value (PB X PE)
The price-to-book value of the company is 124
Dividend Yield
The company pays an annual dividend of 0.63%
Return Ratios
The Return on Capital Employed (ROCE) is 21.3% and the Return on Equity (ROE) is 20.6%
Debt-to-Equity Ratio
The debt-to-equity ratio of the company is 0.32
Sales & Profit in The Last 5 Years
In FY 2020-21, sales were 15,163 crores and profits were 1,228 crores. In FY 2021-22, sales were 16,405 crores and profits were -1,528 crores. In FY 2022-23, sales were 16,642 crores and profits were 448 crores. In 2023-24, sales were 20,011 crores and profits were 1,936 crores. In FY 2024-25, sales were 22,708 crores and profits were 3,306 crores.
Sales & Profit Growth in The Last 5 Years
In the last 5 years, sales growth was 8.11% and profit growth was 54.9%. In the last 3 years, sales growth was 11.4% and profit growth was 59.8%. In the last 1 Year, sales growth was 12.4% and profit was 63.4%
Investors
Shareholding Patterns
The promoter holds 46.90%, FIIs holds 21.25%, DIIs holds 25.55%, and the Public holds 6.28%
Company News
Lupin Limited recently reported a strong financial performance for the quarter ending June 30, 2025, with a consolidated net profit soaring 52% year-over-year to ₹1,221 crore driven by robust growth in both the US and Indian markets. Sales for the quarter rose to ₹6,164 crore, up nearly 12% compared to the same period last year. The company's US sales grew by 24.3%, and it continues to be a leading player in the US generic pharmaceuticals market with 139 generic products. Lupin also received two ANDA approvals from the US FDA and launched three new products in the quarter. The company emphasized sustained focus on compliance, innovation, and technology to fuel future growth. Its stock gained about 5% intraday following this strong quarterly result. Additionally, Lupin recently obtained US FDA approvals for Liraglutide and Glucagon injectable products, further expanding its product portfolio.
Technical Analysis
Company Chart
Moving Average (MA)
The stock is trading at the 50-MA, which indicates that there is no confirmation of the stock's direction.
The stock is trading under the 200-MA, which indicates that the stock is in a bearish trend.
Chart Patterns
The chart pattern of the stock shows that it may continue to trade sideways and then make a breakout if the market situation gets better.
Relative Strength Index (RSI)
Currently, the RSI of the stock is 53, which shows that it is neither in overbought zone nor in the oversold zone.
Strengths & Weaknesses
Strengths
Lupin is a global leader in specific drug categories, especially cephalosporins and anti-tuberculosis medicines, with a strong presence in chronic therapy areas like cardiology, diabetes, respiratory, and CNS drugs.
The company holds significant market shares in key markets, ranking as the 2nd largest pharma company in India and among the top in the US generic pharmaceutical space, with a broad portfolio of complex generics and specialty products.
Lupin has a well-established and diversified product portfolio, supported by successful acquisitions and a strong research & development commitment, investing around 8% of revenues in R&D.
It operates 15 advanced manufacturing facilities worldwide, including 14 US FDA-approved units, emphasizing high-quality production and global regulatory compliance.
The company demonstrates robust financial performance with strong sales growth, increasing profitability, efficient asset utilization, and a net cash position that supports organic and inorganic growth.
Lupin emphasizes digital transformation and operational efficiency through data-driven commercial strategies and a highly skilled, digitally enabled field force.
The company’s patient-centric programs and community engagement reinforce its reputation and brand equity.
Weaknesses
Lupin has a high dependence on the US market, which accounts for a significant portion (about 70-84%) of its revenue, exposing it to market-specific risks and regulatory challenges.
The pharmaceutical sector’s strict regulatory environment leads to high compliance costs and delays, including longer approval times for new products compared to industry averages.
The company faces labor-intensive operations due to the high expertise required in pharma R&D and manufacturing, contributing to higher personnel costs.
Lupin is somewhat less effective than competitors at anticipating product demand, leading to missed market opportunities in some therapy areas.
A notable portion of revenue relies on a few blockbuster drugs, and patent expirations have caused revenue dips in the past, posing risks to consistent income streams.
Its presence in certain emerging markets remains limited, restricting opportunities for geographic diversification.
Some segments of Lupin’s drug portfolio focus on relatively low-growth areas such as tuberculosis, CNS, and cardiovascular drugs, which may reduce growth pace.