Lupin company analysis

Industry Overview  

In 2007, the size of the global pharmaceutical market was US$ 959 bn. The market has since grown at a CAGR of nearly 30% during 2007-2012.  Oncologics and Analgesics were the top selling therapeutic classes in 2012. During 200712 Asia remain fastest growing Pharmaceuticals market followed By Latin American and North America.

Indian market is among top emerging markets for Pharmaceuticals and is expected to grow over 15 per cent per annum between 2015 and 2020. Many companies are coming with new products as the old and petented products are going out of product. Big majority of Indian companies are manufacturing API, Formulations and export to US and Europe. Demand for Indian Pharmaceuticals product is increasing all over the world as the cost of healthcare is increasing all over the world. As per one estimate, export value of Indian Pharma products will be US$ 25 with comparison to market size of 36 Billion. Future growth for Indian companies will come from France, Spain, Italy.

In India, Anti infectivity, gastrointestinal, cardiovascular are holding Highest market Share total 39%

 Company overview : Lupin limited, Mumbai Based company, Second largest Pharma company in India, 14th largest producer of generic drugs in the world and the 5th largest generic drug producer in the world. The company operates in Developing generic drugs, and research also.  Dr. Desh Bandhu Gupta, Promoter of the company was former professor of BITS Pilani. The company is manufacturing major drugs of some common illness like. Asthma, TB, Diabetes, Cardiovascular problems and NSAIDS. The company is widely spread all-over WORLD, South Africa, USA, Japan, Australia, Philippines and the Europe. As it was the Anti-TB Drug which makes Them well known all over the world, Lupin partnered with the government for the revised national TB programme to help with its fight with TB in the country.

R&D activity is important in pharmaceutical industry and LUPIN know it. All over the industry, many companies forget it and only concentrate API amd Formulations. But Lupin  knows the importance of R&D.

Lupin set-up large headquarters for R&D is located in Pune where nearly 1200 scientists work on developing new drugs. They also have a lot of research going on in the latest drug delivery systems like the ADDS (advanced drug delivery systems) and the NDDS (Novel drug delivery systems) that could change the world in the near future.

SHAREHOLDING

Financials and Ratios :

 2010-112011-122012-132013-142014-152015-16
Revenue5818.977081.919641.3011286.5712770.0114208.47
Book value70.6683.61108.29155.64200.84257.27
Net Profit862.55867.651314.161836.372403.242270.69
Net Profit Margin18.0214.9317.6925.9924.5825.57
EPS18.0717.9428.0751.6253.0763.72
ROE25.6921.532633.3026.5524.88
ROCE22.3919.5024.2931.6725.6424.19
ROA15.5413.0617.8826.4121.7720.29
Debt to Equity0.310.270.110.0200.03
Asset Turnover86.2488.59101.59101.5988.5579.34
Dividend Payout16.5217.7614.2011.5714.0611.71
Dividend per Share33.20467.57.5
  

Future Prospects  : Pharma company which is operating in very important segment with showing very Good Growth.

Recently there are some issues with Goa plant but that is now close. The company received permission for the new plants and new API and as a research is needed it is very important company.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter