Stock Tips: Since the announcement of financial results for the first quarter of the current financial year, April-June 2021, Lupine’s shares are being sold. Shares of Lupine, which is included in the portfolio of veteran investor and Big Bull Rakesh Jhunjhunwala, fell by 2 per cent to Rs 958.70 in intra-day today. In the last seven days, Lupine’s shares have lost up to 17 per cent. On August 6, its shares were at a price of Rs 1150.90, which today closed at Rs 966.85 on the BSE.
Lupine shares have been correcting in the last few trading days due to the lack of financial results as expected. According to analysts, Lupine’s financial results have not been up to expectations but it has a lot of growth potential. According to an analyst, the reason for the correction in its shares is also due to stiff competition from Famotidine and pending USPDA approval.
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Jhunjhunwala holds 1.60% stake in Lupine
Big Bull Rakesh Jhunjhunwala holds 1.60 per cent stake in Lupine. He held 72.45 lakh shares at the end of June quarter. In February this year, its prices had reached a record 52-week high of Rs 1267.50 per share. Since then, its price has fallen by 24 percent so far. Lupine’s consolidated net profit grew five times to Rs 542.46 crore in the June 2021 quarter as compared to Rs 106.90 crore in the June 2020 quarter. Apart from this, the company’s consolidated revenue from operations increased to Rs 4237.39 crore from Rs 3468.63 crore in the June 2020 quarter. However, these financial results were weaker than analysts’ earlier estimates.
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- According to Likita Chepa, Senior Analyst, CapitalVia Global Research, the company’s operating performance has been weak but its margins are expected to improve due to healthy growth in India and increase in US sales. In such a situation, investors can hold investments from this stock medium to long term.
- According to AR Ramachandran, Co-Founder and Trainer, Tips2Trades, the stock is technically oversold. Investors investing for a long time should buy at the current price by keeping a target of Rs 1083-1160 in the near term. According to Ramachandran, Lupine will get better support at Rs 960-883.
- Analyst at Emkay Global Financial Services has maintained a buy rating but has lowered the target price to Rs 1,300 from Rs 1325.
- HDFC Securities Institutional Equities has reduced its target price to Rs 1040 from Rs 1220. Apart from this, it has downgraded its rating from ‘Add’ to ‘Reduce’ i.e. its stocks in the portfolio have been advised to be reduced instead of adding more.
- Axis Securities has given a Hold Advice on its shares and has a target price of Rs 1,100.
- Motilal Oswal Financial Services is neutral on this stock.
(Article: Surbhi Jain)
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