1 Pharma Stock to Buy and 1 to Sell According to Brokerages
By Aditya Raghunath
leotraders.in -- Pharma company Lupin Ltd (NS: LUPN ) reported its numbers for Q1 FY22. Net profit came in at Rs 542.46 crore compared to Rs 106.9 crore in Q1 FY21. Revenue increased 21% to Rs 4,270.19 crore from Rs 3,527.6 crore in Q1 FY21.
However, its North American numbers, of which US makes up for 35% of Lupinís global sales, took a hit. Sales for Q1FY22 came in at Rs 13,330 million, down 10.8%, quarter-on-quarter compared to Rs 14,952 million.
Global brokerage CLSA has a sell rating on the stock with a target price of Rs 970. Lupin closed at Rs 988 on August 12.
Cadila Healthcare Ltd. (NS: CADI ) reported a 29.33% rise in its net profit to Rs 587.2 crore for Q1 FY22, after strong sales in India. Total revenue came in at Rs 4,025.4 crore compared to Rs 3,514.6 crore in Q1 FY21.
Motilal Oswal (NS: MOFS ) has a buy call on the stock with a target of Rs 670 on the stock. The brokerage expects 12% earnings CAGR on the back of 16% sales CAGR in DF (considering the muted growth in FY21) and steady US sales (despite increased competition), aided by an 110bp margin expansion from new initiatives in manufacturing, and reduced financial leverage. The vaccine opportunity in India is not built into estimates and can provide a further upside, post approval.