Buy Lupin, target of Rs 935: Karvy

Karvy Stock Broking has recommended a buy rating on Lupin with a target price of Rs 935 in its November 7, 2008 research report. "The company's revenues for the quarter have moved up by 38% to Rs 9.3 billion. The domestic formulation revenues have grown by 24 % to Rs 3.03 billion while formulations exports remain the fulcrum of growth with growth of 143 % to Rs 3.8 billion."

"At the current market price of Rs 25.35, the stock is trading at a P/E of 10.71x FY10E earnings of Rs. 2.37 and P/BV 0.64x FY 10E book value of Rs 39.61. We are upgrading our FY 2009 revenues by 4.3 % to Rs 36.7 bn and our FY 2010 revenues by 3.6 % to Rs 42.1 billion on account of greater traction in formulations exports especially in the regulated markets. We upgrade our FY 2009 nos by 8.1 % to Rs 53.6 and our FY 2010 nos by 12.2 % to Rs 62.3 on account of EBDITA margin expansion mainly on back of savings in gross margins and other expenses. We upgrade our price target by 6 % to Rs 935 based on 15x FY 2010E. Buy," says Karvy's research report.

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Source: Moneycontrol