Lupin Ltd.
NSE: LUPINLupin Ltd.: A 30-second snapshot
Lupin (NSE: LUPIN) trades at ₹2,258.20, up 11.4% over 12 months, sitting above its 200-DMA (₹2,112.44) but below its 50-DMA (₹2,315.67). Trailing PE is 19.53 against a forward PE of 22.35; ROE of 26.91% is the highest among the available pharma peer set, though historical ROE persistence is limited to 1 year above 15% across the measurement window. A USFDA inspection of the Somerset facility resulted in 3 observations in April 2026, an open regulatory item at the time of this analysis.
P/E
19.5
Forward P/E
22.4
ROE
+26.9%
Debt / Equity
29.39
Profit Margin
+19.1%
Div. Yield
+0.5%
5Y ROE > 15%
1/5
5Y FCF > 0
3/5
Quality
64/100
News
8 headlines · 5 positive · 1 negative
Lupin and Mylan Partner to Commercialize Enbrel® (Etanercept) Biosimilar - Lupin | Press Release - lupin.com
lupin.com
Lupin Shares Slump Despite 90% Jump In Q4 Profit, Highest-Ever Dividend Announcement - NDTV Profit
NDTV Profit
Lupin Limited Gets 3 Observations After USFDA Inspection of Somerset Facility - Medical Dialogues
Medical Dialogues
How Lupin engineered its road to record profits - Business Today
Business Today
Lupin Launches Dapagliflozin and Metformin Hydrochloride Extended-Release Tablets in the United States - PR Newswire
PR Newswire
Recent context
- ·Q4 FY26 results reported approximately 90% YoY profit growth and the highest-ever dividend declaration; however, NDTV Profit reported shares declined on the day of the announcement, suggesting forward guidance did not match market expectations.
- ·USFDA inspected Lupins Somerset manufacturing facility in April 2026 and issued 3 observations — an open regulatory item that could affect approvals of US-market products pending at that site.
- ·Lupin and Mylan announced a partnership to commercialise an Enbrel (etanercept) biosimilar, and the company launched Dapagliflozin + Metformin ER tablets in the US market during April–May 2026.
Strengths
- +ROE of 26.91% ranks 1st among available peers (Cipla: 11.74%, Dr. Reddys: 11.84%), with a trailing PE of 19.53 — the lowest in the peer group — indicating relatively less valuation premium paid per unit of return.
- +Revenue grew 31.9% over 5 years with a quality score of 72, ranking 1st of 6 in the sector peer set on that composite measure.
- +News flow is net positive (5 positive, 1 negative across 8 articles): Q4 profit rose approximately 90% YoY, and a highest-ever dividend was declared in May 2026.
- +A new US product launch (Dapagliflozin + Metformin ER tablets) and a biosimilar partnership with Mylan for Enbrel etanercept were announced in April–May 2026, indicating active pipeline commercialisation in the US market.
Weaknesses
- −ROE persistence is limited: only 1 of the available historical years records ROE above 15%, and the consistency score is 31/100 — the current 26.91% ROE may not reflect a durable multi-year trend.
- −Debt trend is rising and free cash flow was positive in only 3 of the available persistence years, which constrains the margin of safety against revenue or margin pressure.
- −USFDA issued 3 observations following an April 2026 inspection of the Somerset facility; the outcome is unresolved and carries potential for product approval delays or import restrictions.
- −Forward PE of 22.35 exceeds trailing PE of 19.53, embedding an earnings growth expectation at a time when the 5-year earnings growth of 89% reflects recovery from a low base rather than a steady compounding trajectory.
Open questions
- ?Is the current ROE of 26.91% driven by a structural improvement in Lupins US generics business mix, or does it reflect a transient factor such as one-time product exclusivities or base-period distortions?
- ?How has the Somerset USFDA inspection outcome developed since April 2026, and what proportion of Lupins US revenue pipeline depends on approvals from that facility?
- ?Given that forward PE exceeds trailing PE, what is the earnings growth assumption embedded in the current price, and how does that compare to managements own guidance trajectory?
- ?Does the rising debt trend reflect deliberate investment in biosimilar and complex generics capacity, or is it driven by working capital deterioration — and how does the companys interest coverage ratio look against peers?
Peer comparison: Pharma
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LUPIN | Lupin Ltd.You're viewing | 19.5 | +26.9% | 72 |
| Industry avg | across 5 peers | 47.0 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.5 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.6 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.6 | +11.8% | 17 |
Technical state
Current price
₹2,258.20
SMA 50
₹2,315.67
SMA 200
₹2,112.44
RSI (14)
43.8 (neutral)
From 52w high
-9.4%
1Y return
+11.4%
3M return
+2.5%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE persistence is weak: only 1 of the available historical years shows ROE above 15%, against a current trailing ROE of 26.91%. The consistency score of 31/100 indicates that profitability has not been durable over the measurement window — the current ROE reading may reflect a recent earnings recovery rather than a structural trend.
- mediumDebt trend is rising. Debt-to-equity is reported at 29.39 (percentage basis), and free cash flow was positive in only 3 of the available persistence years, limiting the buffer to service incrementally higher debt if revenue or margins compress.
- mediumUSFDA issued 3 observations following an inspection of Lupins Somerset facility (April 2026). Regulatory observations at US manufacturing sites can delay or restrict product approvals; resolution of these observations is not yet reported in the available news window.
- lowForward PE of 22.35 exceeds trailing PE of 19.53, implying the market is pricing in earnings growth not yet reflected in reported figures. The 5-year earnings growth of 89% likely reflects recovery from a depressed base, as indicated by the low persistence consistency score of 31.
- lowPeer comparison is partially incomplete: ROE and 1-year price change are null for 4 of 5 peers, limiting the reliability of sector rankings on those dimensions. Lupin ranks 1st of 6 on PE, ROE, and quality score among available data points, but the ranking is based on a thin comparison set.
Cross-section contradictions
- Q4 profit rose approximately 90% YoY and a highest-ever dividend was declared, yet the share price declined on the day of the result announcement — suggesting the market response was driven by forward guidance expectations rather than the reported figures.
- ROE persistence shows only 1 historical year above 15%, yet trailing ROE is 26.91% — either the improvement is recent and not yet captured in multi-year averages, or the figure reflects a transient earnings spike rather than a durable structural shift.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days