As for Lupine, CLSA said Q4 was another disappointing quarter and those challenges persisted on the margin front. Key markets in India and the United States are undershooting expectations, he said while suggesting a weak near-term outlook. While only expecting a margin recovery in the second half of FY23, brokerage has reduced FY23-24’s EPS estimate for Lupine by 18 percent to reflect margin concerns. The stock of the brokerage has a target of Rs 600.
In the case of DRL, Morgan Stanley said that pharmaceutical manufacturers have continued to grow granularly and that the growth trend in FY23 should continue.
DRL continues to invest in complex generic, biosimilars, saying the stock is available for a reasonable valuation, which drives its overweight position. This brokerage sees DRL stock at Rs 5,202.
Meanwhile, Morgan Stanley has maintained ‘underweight’
Since Q4 missed the consensus estimate on the income margin front. International business performance was weak while the near-term weak earnings outlook is the main negative, it said while suggesting a target of Rs 700 on the stock.
(Disclaimer: The recommendations, suggestions, opinions and opinions offered by the experts are their own. These do not represent the views of the Economic Times)