Lupin’s share price has surged by an impressive 5%, now trading at Rs 1,709.1. This significant rise in Lupin’s stock price stands out against the backdrop of the BSE Healthcare index, which has only seen a modest increase of 0.5%, reaching 37,614.7. The pharmaceutical sector has been a mixed bag today, with notable gainers and losers contributing to the overall market performance.
Granules India and FDC are among the top performers in the BSE Healthcare index today, recording gains of 2.4% and 2.0%, respectively. On the other hand, Suven Pharmaceuticals and Eris Lifesciences have experienced declines, with their stock prices falling by 1.7% and 1.0%, respectively. Despite these fluctuations, the overall sentiment in the healthcare sector appears positive, buoyed by the robust performance of companies like Lupin.
Over the past year, Lupin has demonstrated remarkable growth. Its share price has risen from Rs 892.5 to Rs 1,709.1, marking a substantial gain of 91.5%. This impressive performance has significantly outpaced the BSE Healthcare index, which has seen a 46.8% increase, rising from 25,627.6 to 37,614.7 over the same period. Among the top gainers in the BSE Healthcare index over the last 12 months are Glenmark Pharma, Lupin, and Cadila Healthcare, with Glenmark Pharma leading the pack with a 95.3% increase.
The broader market has also seen modest gains. The BSE Sensex is currently at 80,160.9, up by 0.2%. HCL Tech and ICICI Bank are among the top gainers in the BSE Sensex, with HCL Tech up by 2.6% and ICICI Bank up by 1.8%. Tata Motors and HDFC Bank are the most traded stocks in the BSE Sensex today. Similarly, the NSE Nifty is at 24,339.0, up by 0.2%, with HCL Tech and ICICI Bank also among the top gainers.
In the last 12 months, the BSE Sensex has increased from 65,205.1 to 80,160.9, registering a gain of 14,955.9 points, which translates to a 22.9% increase. This steady growth in the broader market indices reflects a generally positive sentiment among investors, which has also benefited individual stocks like Lupin.
Lupin’s financial performance has been a significant driver of its stock price increase. For the quarter ended March 2024, Lupin reported a net profit of Rs 3,682 million, a 51.9% year-on-year increase from Rs 2,424 million in the same period last year. The company’s net sales rose by 12.0% to Rs 49,608 million during this period, up from Rs 44,301 million in January-March 2023.
This strong quarterly performance follows a stellar year for Lupin in FY23, where the company reported a 129.7% increase in net profit to Rs 4,477 million, a significant turnaround from a net loss of Rs 15,094 million in FY22. Revenue for the company grew by 1.4% to Rs 166,417 million during FY23.
The current P/E ratio of Lupin, based on rolling 12-month earnings, stands at 40.3. This P/E ratio indicates a high level of investor confidence in the company’s future earnings potential, reflecting the positive sentiment surrounding Lupin’s stock.
Lupin’s impressive stock performance, backed by strong financial results, has made it a standout performer in the BSE Healthcare index and the broader market. With continued growth and investor confidence, Lupin appears well-positioned to maintain its upward trajectory in the coming months.
