Lupin Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹1,961.60−₹19.30 (−0.97%)

DalalBaazaar Score

84 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Lupin Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lupin Limited, together with its subsidiaries, operates as a pharmaceutical company in India, the United States, and internationally. The company operates in two segments: Pharmaceuticals and Others.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees26,021

Annual revenue₹27,488 Cr

How does it make money?

Turns over ₹27,488 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 26,021 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 28.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What is the outlook?

32 analysts covering the stock expect revenue to grow about 6.6% and earnings to grow about 6.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.6%

Est. earnings growth+6.0%

Analysts32

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +69% while net margin moved +634% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+69%

Margin effect+634%

DalalBaazaar Score

84/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.17 — historically steadier than the index
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

91/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

16.2x

3Y Median

48.4x

40 monthly readings · mean 72.3x · range 16.8x–203.2x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 66% below its 3y median of 48.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 51% below the peer median of 33.3x.

vs. its own history

Cheap

48.4x median over 40 months · -66%

vs. sector peers

Cheap

33.3x median of 4 peers · -51%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.2x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 11.4% to 33.0% over 3 years.
Cash generation is improving
Free cash flow is up 1228% over 3 years.
Return on equity is rising
ROE has improved from 3.5% to 23.8%.
Return on capital is rising
ROCE has improved from 7.0% to 28.3%.
High return on capital employed
ROCE of 28.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 46% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.4% to 33.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 66% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹5,280 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 19.1% CAGR
Latest reported year was 32.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 31%✓ 33.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹5,280 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 28.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹89,702 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

16.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹120.73

Profitable

Profitable on a per-share basis

ROE

23.8%

Strong

Strong capital efficiency

ROCE

28.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

32.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.92%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹5,280 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.3x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

25.4%

Good

Healthy core-business profitability

Net Margin

18.5%

Good

Strong bottom-line conversion

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2027.2 / 2121.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16,270 Cr	₹19,656 Cr	₹22,192 Cr	₹27,488 Cr	+19.1%
EBITDA	₹1,852 Cr	₹4,066 Cr	₹5,645 Cr	₹9,064 Cr	+69.8%
EBITDA Margin	11.4%	20.7%	25.4%	33.0%	—
PAT (Net Profit)	₹430 Cr	₹1,914 Cr	₹3,282 Cr	₹5,333 Cr	+131.5%
EPS	₹9.41	₹41.87	₹71.69	₹116.44	+131.3%
ROE	3.5%	13.4%	19.1%	23.8%	—
ROCE	7.0%	17.4%	21.2%	28.3%	—
Total Debt	₹4,542 Cr	₹2,922 Cr	₹5,448 Cr	₹6,616 Cr	+13.4%
Free Cash Flow	₹398 Cr	₹2,719 Cr	₹1,318 Cr	₹5,280 Cr	+136.8%

🟢 Revenue has grown at 19.1% a year over 3 years.

🟢 EBITDA has grown at 69.8% a year over 3 years.

🟢 EBITDA Margin has risen from 11.4% to 33.0% over 3 years (+21.6 pts).

🟢 PAT (Net Profit) has grown at 131.5% a year over 3 years.

🟢 EPS has grown at 131.3% a year over 3 years.

🟢 ROE has risen from 3.5% to 23.8% over 3 years (+20.3 pts).

🟢 ROCE has risen from 7.0% to 28.3% over 3 years (+21.3 pts).

🔴 Total Debt has grown at 13.4% a year over 3 years.

🟢 Free Cash Flow has grown at 136.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38,365 Cr

Total Liabilities

₹15,851 Cr

Cash & Equivalents

₹4,168 Cr

Operating Cash Flow

₹7,335 Cr

Capex

-₹2,055 Cr

Shareholding (proxy)

Institutional Holding

35.2%

Insider Holding

47.0%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹18

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

17 Buy · 11 Hold · 8 Sell

Target Price (Mean)

₹2,446.14

+24.7% vs CMP

Target Range

₹1,800 – ₹3,095

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive1 mixed1 negative3 general

LUPIN Outlook for the Week

Equitypandit, 16 Oct

Lupin dips 4%, hits seven-week low; what's making the Street nervous?

Business Standard, 10 Aug

Lupin share falls 2%; Citi downgrades to Sell, cuts target price to Rs 2,050

The Economic Times, 27 AugAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Lupin Ltd. (LUPIN) 52 Week Low Streak: Second Straight Session Near One-Year Low

Univest, 13 Oct

Why You Might Be Interested In Lupin Limited (NSE:LUPIN) For Its Upcoming Dividend

Simply Wall Street, 13 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Lupin Shares Rise After Q1 Profit, Revenue Beat Street Estimates

NDTV Profit, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑