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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Lupin Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:52 pm

Market Cap 93,253 Cr.
Current Price 2,043
High / Low2,312/1,184
Stock P/E35.5
Book Value 343
Dividend Yield0.39 %
ROCE15.7 %
ROE14.1 %
Face Value 2.00
PEG Ratio0.31

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Lupin Ltd

Competitors of Lupin Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,465 Cr. 318390/10865.7 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 59.8 Cr. 80.694.9/25.822.9 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 28.0 Cr. 19.119.5/8.3536.3 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 85.5 Cr. 114155/87.012.8 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,221 Cr. 1,0801,335/62031.2 2072.08 %28.1 %21.1 % 2.00
Industry Average19,460.76 Cr1,177.0554.20184.880.33%16.40%16.92%6.61

All Competitor Stocks of Lupin Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4,0173,7834,2704,0914,1613,8833,7444,1464,3224,4304,8145,0395,197
Expenses3,2393,0663,3055,4153,7913,6153,5123,6933,7903,8523,9584,1214,159
Operating Profit779717965-1,3243702682324535335788569181,038
OPM %19%19%23%-32%9%7%6%11%12%13%18%18%20%
Other Income2149287334166151837234029
Interest31323334334143558493868174
Depreciation244216209919203327193203220264235248257
Profit before tax525518750-2,205167-852210246258559630736
Tax %16%10%27%5%-229%-502%3,925%36%36%6%19%21%16%
Net Profit441464548-2,095549-512-87134158242453495619
EPS in Rs9.6610.1511.95-46.2112.01-11.40-1.962.853.375.199.9410.7613.47

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,0839,64111,28612,77014,25617,36715,79714,66515,37515,16316,40516,64219,480
Expenses5,6207,3568,2719,14610,56412,86512,64912,10413,02012,59616,18714,92116,090
Operating Profit1,4632,2843,0153,6243,6914,5023,1482,5612,3552,5672191,7213,390
OPM %21%24%27%28%26%26%20%17%15%17%1%10%17%
Other Income-313105235184106-1,31091-134138210151130
Interest3541271059153204302363141143274333
Depreciation2283322614354879121,0868469708871,6598811,004
Profit before tax1,1961,9252,8323,4153,3293,5435471,5038871,676-1,3727162,183
Tax %26%30%34%28%32%28%53%59%130%27%-10%38%
Net Profit8881,3401,8702,4442,2702,565258615-2701,228-1,5284301,810
EPS in Rs19.4329.3640.9653.4750.1756.635.5613.40-5.9526.81-33.629.4539.36
Dividend Payout %18%14%15%14%15%13%90%37%-101%24%-12%42%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.90%39.55%30.70%-7.12%13.00%-89.94%138.37%-143.90%554.81%-224.43%128.14%
Change in YoY Net Profit Growth (%)0.00%-11.35%-8.86%-37.81%20.12%-102.94%228.31%-282.27%698.72%-779.24%352.57%

Lupin Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:6%
3 Years:10%
TTM:15%
Compounded Profit Growth
10 Years:0%
5 Years:21%
3 Years:17%
TTM:97%
Stock Price CAGR
10 Years:3%
5 Years:21%
3 Years:33%
1 Year:68%
Return on Equity
10 Years:8%
5 Years:2%
3 Years:2%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital90909090909090919191919191
Reserves5,1156,8428,78411,07313,40713,48713,65212,44613,71212,06212,37414,19915,551
Borrowings1,1646545377,1787,9667,1438,4966,3055,1294,1584,5422,9223,442
Other Liabilities2,4752,5503,6423,9574,7495,3005,4235,9684,4985,3405,7946,5396,398
Total Liabilities8,84310,13513,05422,29826,21226,02027,66124,81023,43021,65122,80023,75125,482
Fixed Assets3,0003,3564,3688,71711,03310,36211,0877,9387,8817,3828,3558,8789,062
CWIP3113045762,7022,1332,5981,6409401,0661,1461,238773635
Investments21781,658162,1362622,2952,3742,4559005171,0751,575
Other Assets5,5306,2976,45110,86210,91012,79812,63913,55712,02812,22412,69013,02614,209
Total Assets8,84310,13513,05422,29826,21226,02027,66124,81023,43021,65122,80023,75125,482

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,2512,0042,733-3824,1141,7511,6661,4691,8223671,8973,648
Cash from Investing Activity +-522-851-1,034-6,769-2,527470-3,2821,107-1,2401,292-1,287-1,712
Cash from Financing Activity +-663-857-1975,836433-1,492744-891-1,885-1,572-337-2,184
Net Cash Flow662961,502-1,3152,019729-8721,685-1,30387273-248

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.001.00-651.00-534.00-4.00-3.00-4.00-6.00-4.00-3.00215.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days83807611691120128129108959886
Inventory Days200204220276266253283232279261242272
Days Payable159152172168189178184162137129136163
Cash Conversion Cycle125131124225167195227199249227204195
Working Capital Days92946714711213715492151135127103
ROCE %33%41%40%24%19%10%10%9%9%-7%6%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters46.83%46.81%46.78%47.10%47.11%47.10%47.08%47.07%47.06%47.04%47.01%46.99%
FIIs15.66%15.28%14.65%14.27%13.81%13.98%13.32%13.93%14.99%16.11%18.29%19.32%
DIIs24.47%24.83%26.91%26.89%27.63%29.39%28.92%29.08%29.14%29.72%27.76%26.77%
Government0.28%0.28%0.29%0.29%0.00%0.00%0.28%0.28%0.28%0.01%0.01%0.01%
Public12.76%12.79%11.37%11.45%11.45%9.51%10.39%9.62%8.52%7.10%6.93%6.92%
No. of Shareholders3,61,2883,61,8623,78,5473,82,8283,78,0113,60,6773,48,1493,22,6782,89,0742,81,5422,80,2482,88,537

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan5,852,1651.03660.214,055,5852024-11-2044.3%
ICICI Prudential Bluechip Fund5,051,5561.38569.894,055,5852024-11-2024.56%
ICICI Prudential Value Discovery Fund4,451,8181.55502.234,055,5852024-11-209.77%
HDFC Flexi Cap Fund - Regular Plan4,250,0001.22479.464,055,5852024-11-204.79%
Mirae Asset Emerging Bluechip Fund4,055,5851.63457.534,055,5852024-11-200%
HDFC Top 100 Fund - Regular Plan3,369,0131.47380.084,055,5852024-11-20-16.93%
Mirae Asset Midcap Fund2,934,0862.81331.014,055,5852024-11-20-27.65%
SBI Long Term Equity Fund2,687,8871.92303.234,055,5852024-11-20-33.72%
ICICI Prudential Multi Asset Fund2,004,2920.91226.114,055,5852024-11-20-50.58%
ICICI Prudential Large & Mid Cap Fund1,584,8502.02178.794,055,5852024-11-20-60.92%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)42.059.46-33.6526.84-5.95
Diluted EPS (Rs.)41.879.41-33.6526.72-5.95
Cash EPS (Rs.)68.7429.203.2846.5915.38
Book Value[Excl.RevalReserv]/Share (Rs.)315.41275.67268.91305.45277.73
Book Value[Incl.RevalReserv]/Share (Rs.)315.41275.67268.91305.45277.73
Revenue From Operations / Share (Rs.)439.12365.75360.96334.21339.40
PBDIT / Share (Rs.)86.2641.139.4459.5862.66
PBIT / Share (Rs.)59.9921.78-27.0640.0241.24
PBT / Share (Rs.)53.1515.75-30.2036.9216.63
Net Profit / Share (Rs.)42.479.84-33.2227.04-6.04
NP After MI And SOA / Share (Rs.)42.019.45-33.6226.81-5.95
PBDIT Margin (%)19.6411.242.6117.8218.46
PBIT Margin (%)13.665.95-7.4911.9712.15
PBT Margin (%)12.104.30-8.3611.044.89
Net Profit Margin (%)9.672.69-9.208.08-1.78
NP After MI And SOA Margin (%)9.562.58-9.318.02-1.75
Return on Networth / Equity (%)13.393.45-12.578.81-2.14
Return on Capital Employeed (%)17.647.23-9.0711.9611.85
Return On Assets (%)7.971.87-7.005.15-1.07
Long Term Debt / Equity (X)0.000.000.010.000.14
Total Debt / Equity (X)0.180.340.310.220.34
Asset Turnover Ratio (%)0.850.500.510.470.45
Current Ratio (X)1.581.341.511.661.67
Quick Ratio (X)0.990.850.941.171.30
Inventory Turnover Ratio (X)0.870.820.770.880.87
Dividend Payout Ratio (NP) (%)9.5042.28-19.3122.34-84.00
Dividend Payout Ratio (CP) (%)5.8513.87225.8212.9232.29
Earning Retention Ratio (%)90.5057.72119.3177.66184.00
Cash Earning Retention Ratio (%)94.1586.13-125.8287.0867.71
Interest Coverage Ratio (X)12.616.823.0019.227.82
Interest Coverage Ratio (Post Tax) (X)7.212.63-9.579.721.96
Enterprise Value (Cr.)75275.9532506.4236722.7147698.5728589.60
EV / Net Operating Revenue (X)3.761.952.243.151.86
EV / EBITDA (X)19.1517.3785.6217.6510.07
MarketCap / Net Operating Revenue (X)3.681.772.073.051.74
Retention Ratios (%)90.4957.71119.3177.65184.00
Price / BV (X)5.162.362.793.362.13
Price / Net Operating Revenue (X)3.681.772.073.051.74
EarningsYield0.020.01-0.040.02-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Lupin Ltd as of November 21, 2024 is: 1,723.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Lupin Ltd is Overvalued by 15.63% compared to the current share price 2,043.00

Intrinsic Value of Lupin Ltd as of November 21, 2024 is: 3,711.64

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Lupin Ltd is Undervalued by 81.68% compared to the current share price 2,043.00

Last 5 Year EPS CAGR: 115.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.50%, which is a positive sign.
  2. The company has higher reserves (11,746.46 cr) compared to borrowings (4,587.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (13.85 cr) and profit (166.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 117.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 189.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Lupin Ltd:
    1. Net Profit Margin: 9.67%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.64% (Industry Average ROCE: 16.25%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.39% (Industry Average ROE: 16.45%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.21
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.99
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 35.5 (Industry average Stock P/E: 43.76)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.18
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Lupin Ltd. is a Public Limited Listed company incorporated on 01/03/1983 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH1983PLC029442 and registration number is 029442. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 11771.67 Cr. and Equity Capital is Rs. 90.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsKalpataru Inspire, 3rd Floor, Mumbai Maharashtra 400055info@lupin.com
http://www.lupin.com
Management
NamePosition Held
Mrs. Manju D GuptaChairman
Mr. Nilesh D GuptaManaging Director
Ms. Vinita GuptaDirector & CEO
Mr. Ramesh SwaminathanExecutive Director & Global CFO
Mr. Mark D McDadeIndependent Director
Dr. Punita Kumar-SinhaIndependent Director
Mr. Jean-Luc BelingardIndependent Director
Mr. Jeffrey KindlerIndependent Director
Mr. Alfonso ZuluetaIndependent Director

FAQ

What is the latest intrinsic value of Lupin Ltd?

The latest intrinsic value of Lupin Ltd as on 21 November 2024 is ₹1723.58, which is 15.63% lower than the current market price of ₹2,043.00.

What is the Market Cap of Lupin Ltd?

The Market Cap of Lupin Ltd is 93,253 Cr..

What is the current Stock Price of Lupin Ltd as on 21 November 2024?

The current stock price of Lupin Ltd as on 21 November 2024 is ₹2,043.

What is the High / Low of Lupin Ltd stocks in FY 2024?

In FY 2024, the High / Low of Lupin Ltd stocks is 2,312/1,184.

What is the Stock P/E of Lupin Ltd?

The Stock P/E of Lupin Ltd is 35.5.

What is the Book Value of Lupin Ltd?

The Book Value of Lupin Ltd is 343.

What is the Dividend Yield of Lupin Ltd?

The Dividend Yield of Lupin Ltd is 0.39 %.

What is the ROCE of Lupin Ltd?

The ROCE of Lupin Ltd is 15.7 %.

What is the ROE of Lupin Ltd?

The ROE of Lupin Ltd is 14.1 %.

What is the Face Value of Lupin Ltd?

The Face Value of Lupin Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Lupin Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE