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HSBC Cuts Lupin Price Target, Maintains 'Buy' Despite Valuation Concerns
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CNBC TV18•22-09-2026, 13:14
HSBC Cuts Lupin Price Target, Maintains 'Buy' Despite Valuation Concerns
- •HSBC lowered Lupin's price target by 10% to ₹2,500 from ₹2,770, citing valuation concerns, but retained a "buy" recommendation.
- •The brokerage believes Lupin's current valuation overemphasizes known concentration risks while undermining its US product pipeline.
- •HSBC projects Lupin's US sales to stabilize at around $1.2 billion annually from FY27-FY29, supported by new product launches.
- •Lupin reported a strong Q1 FY27 with consolidated net profit up 16.1% to ₹1,415 crore and revenue up 33.3% to ₹8,217 crore.
- •The US remains Lupin's largest market, with revenue rising to $366 million; India and other markets also showed significant growth.
Key Questions Answered
HSBC reduced its price target on Lupin by 10% from ₹2,770 to ₹2,500 due to valuation concerns, though it maintained a "buy" rating on the stock.
In Q1 FY27, Lupin reported a 16.1% year-on-year rise in consolidated net profit to ₹1,415 crore and a 33.3% increase in revenue from operations to ₹8,217 crore.
HSBC expects Lupin's US sales to stabilise at approximately $1.2 billion annually during the FY27-FY29 period, supported by new product launches following an anticipated reset in the FY27 base.
