1. At a Glance
Once battered by regulatory setbacks and margin crush, Lupin is rising from the ashes like a steroid-pumped phoenix. With margins back to double digits and US approvals rolling in, the stock’s got more bounce than an antidepressant ad.
2. Introduction with Hook
Imagine you were once the Rajinikanth of Indian pharma exports—unstoppable, stylish, and everywhere. Then came USFDA slaps, plunging margins, and shareholder heartbreak. That’s Lupin. But now? With FY25 profits up 71% and margins rebounding to 23%, Lupin’s comeback story is giving Rocky Balboa vibes.
- Key Stat #1: Net Profit FY25: ₹3,306 Cr vs ₹1,936 Cr in FY24
- Key Stat #2: OPM surge from 1% in FY22 to 23% in FY25
3. Business Model (WTF Do They Even Do?)
Lupin is the 9-to-9 workhorse of the pharma world, grinding out:
- Branded generics across India and the US (its largest market)
- APIs and complex generics in anti-TB, cardiovascular, and CNS
- Biotech & inhalation products for chronic disease segments
- Operates in 100+ countries, including the juicy but competitive US generics space
- Owns 15+ manufacturing facilities, most USFDA-approved (with the occasional warning letter for spice)
They make pills. They make APIs. They make money. Occasionally, they make investors nervous.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 16,642 | 20,011 | 22,708 |
| Operating Profit (₹ Cr) | 1,721 | 3,800 | 5,283 |
| Net Profit (₹ Cr) | 448 | 1,936 | 3,306 |
| OPM % | 10% | 19% | 23% |
| ROE % | 6% | 16% | 21% |
Narrative:
Lupin just pulled a “reverse aging” miracle on its income statement. Revenue up, profits 7x in 2 years, and OPM that doesn’t look like a rounding error anymore.
5. Valuation
Let’s math it out:
- EPS FY25: ₹71.88
- P/E band historically: 15x (stress) to 35x (euphoria)
- Fair Value Range:
- Bearish: ₹1,078 (15x)
- Median: ₹1,796 (25x)
- Bullish: ₹2,516 (35x)
Current price ₹1,930 looks like the market’s already sniffing the good stuff.
6. What’s Cooking – News, Triggers, Drama
- US Launches: Loteprednol Etabonate eyedrop just launched—$55M market in sight
- AGM Buzz: Final Dividend ₹12/share, AGM set for Aug 11
- Pipeline: 20+ ANDAs pending with USFDA
- FIIs flooding in: FII holding up from 14% to 21% in 12 months
- Scandal-free (for now): Zero 2025 red flags
7. Balance Sheet
| Line Item | FY24 | FY25 |
|---|---|---|
| Equity | ₹91 Cr | ₹91 Cr |
| Reserves | ₹14,199 Cr | ₹17,112 Cr |
| Borrowings | ₹2,922 Cr | ₹5,448 Cr |
| Total Assets | ₹23,751 Cr | ₹29,205 Cr |
Key Points:
- Reserves beefed up nicely
- Debt increased, but manageable due to operating cash gush
- Asset-light? Nah. But productive.
8. Cash Flow – Sab Number Game Hai
| Cash Flow Segment | FY24 | FY25 |
|---|---|---|
| Operating | ₹3,648 Cr | ₹3,000 Cr |
| Investing | ₹-1,712 Cr | ₹-4,172 Cr |
| Financing | ₹-2,184 Cr | ₹1,732 Cr |
| Net Cash Flow | ₹-248 Cr | ₹560 Cr |
Insight:
Investing activity exploded—possibly capex into inhalation/biotech facilities. Still, they’re managing liquidity better than your average crypto startup.
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROCE | 16% | 22% |
| ROE | 16% | 21% |
| Debtor Days | 86 | 88 |
| Inventory Days | 272 | 292 |
| CCC | 195 | 223 |
| Cash Conversion | Improving, but still pharma-slow |
Verdict:
ROE’s up, debt is under control, but inventory management could use a yoga retreat.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| FY23 | ₹16,642 Cr | 10% | ₹448 Cr | ₹9.45 |
| FY24 | ₹20,011 Cr | 19% | ₹1,936 Cr | ₹42.01 |
| FY25 | ₹22,708 Cr | 23% | ₹3,306 Cr | ₹71.88 |
This ain’t your 2020 Lupin. This one’s jacked, profitable, and FDA-compliant (most days).
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE | ROE | OPM |
|---|---|---|---|---|---|
| Sun Pharma | ₹1,701 | 35.6 | 20.2% | 16.9% | 28.7% |
| Cipla | ₹1,475 | 23.2 | 22.7% | 17.8% | 25.9% |
| DRL | ₹1,259 | 18.9 | 22.7% | 18.0% | 26.2% |
| Zydus | ₹969 | 20.9 | 24.4% | 21.3% | 30.4% |
| Lupin | ₹1,930 | 26.8 | 21.5% | 20.8% | 23.3% |
Conclusion:
Lupin’s no longer the underdog—it’s sprinting side-by-side with giants. P/E’s mid-range, but margin recovery is its golden ticket.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: Stable at ~47%, no pledges
- FII Holding: Up from 13.9% to 21.5% in a year = confidence restored
- DII Holding: 25.4%, steady but cooling
- Public Holding: Just 6.2% — retail late to the party (as usual)
- AGM Alert: Aug 11, 2025 — the dividend cheque cometh.
13. EduInvesting Verdict™
Lupin’s comeback has all the drama of a Bollywood sequel—regulatory battles, financial resurrection, and a global stage. From negative EPS in FY22 to ₹71.88 in FY25, it’s a pharma redemption arc investors dream of. Whether you’re a technical trader or a fundamentalist monk, Lupin now has the earnings muscle to back its hype.
Caveats? The US generics game remains brutal. But Lupin’s margin rebound and fresh launches suggest it’s got enough fuel to stay in the race. Not a hero. Not a villain. Just a seasoned gladiator.
Metadata
– Written by EduInvesting Team | July 17, 2025
– Tags: Lupin, Pharma Stocks, Margin Turnaround, Generics, USFDA, API, India Pharma, Stock Research, EduInvesting Premium, Financial Analysis
