Lupin (LUPIN)

FairStock Score: 74/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Lupin as a Graham-style analyst: price is what you pay, value is what you get. At ₹2,235 and ₹1.02 lakh Cr market cap, the business earns a 27% ROE and 21.3% ROCE, with debt/equity of only 0.29. That tells me the core pharma operation is high-quality and not over-leveraged. Promoter holding of 46.89% aligns interests. The latest quarter showed sales of ₹7,168 Cr and net profit of ₹1,181 Cr; sales and profit growth of 24.45% and 27.56% are impressive. However, the five-year revenue CAGR is only 8.11%, so I must ask whether this is a durable acceleration or a cyclical upswing. The moat may come from generics, brands, and regulatory approvals, but I only have numbers: Piotroski F-Score 8/9 and Altman Z-Score 4.53 suggest financial strength and low distress risk. The P/E of 18.52 and PEG of 0.71 look reasonable for a steady grower. Yet Graham’s Number is ₹929.30, giving a margin of safety of -147.70%; I am paying far above asset-based intrinsic value. P/B is 4.55, and EV/EBITDA at 37.42 is rich. Free cash flow is negative ₹1,172 Cr, a yellow flag; I prefer cash generation over reported profit. Dividend yield is only 0.81%. FairStock score 74/100 'STEADY' captures it. This is a Stalwart: a quality, low-debt pharma business, but not a bargain. I would monitor FCF turning positive, whether 24% growth persists, and EV/EBITDA compression before buying.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer