LUPIN LTD Stay Invested

A much fancied stock on the bourses, the company’s financial performance for the first quarter ended 30/06/08 has been very good.

Net sales on a YoY recorded a 50% rise at Rs.862.32 crore. Its revenue in India contributed Rs.346.32 crore while that out of India, contributed Rs.532.55 crore. The launch of Ramipril capsules in US, after successful litigation over patent, added on mainly to the revenue. Its business in Japan contributed 10% to the total revenue while USA and Europe contributed 69%. The cumulative approvals in USA currently stand at 30 while 35 are awaiting USFDA approvals.

PBT was up 87% at Rs.143.30 crore and PAT showed a whopping 100% increase at Rs.112.04 crore.

The company’s drugs are used mainly for treating respiratory problems and this has four divisions - anti-TB, anti-asthma (inhalation segment), anti-infectives, anti-allergies and supportive therapy products. Its anti-TB drugs cover nearly 80% of API sales to the semi regulated markets and its biggest brand is R-Cinex. In the TB segment it continues to lead with a market share of 45%.

Lupin recently acquired Germany-based Hormosan Pharma, a German sales and marketing generics company specialized in the supply of pharmaceutical products for the nervous system.

It has planned a capex of Rs.200 crore to set up additional manufacturing units at SEZ in Indore, Madhya Pradesh, as per USFDA standards. It is also planning to establish an additional active pharmaceutical ingredient (API) manufacturing plants in Madhya Pradesh and Gujarat.

The market has realised the potential of this pharma company which is why it is today quoted near its 52-week high. Pharma stocks are also the current favourite with the bourses. Stay invested.
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