Lupin Limited (LUPIN) AI Stock Analysis

• Market Cap: ₹982.60B
• Dividend Yield: 0.57%
• Average Volume (3M): 25.39K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.72
• Revenue Growth: 15.49%
• EPS Growth: 64.37%
• Country: IN
• Employees: 19,210
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 32.28
• Shares Outstanding: 456,798,800
• 10 Day Avg. Volume: 23,417
• 30 Day Avg. Volume: 25,387
• PEG Ratio: 0.38
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 3.94
• P/FCF Ratio: 67.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,600.00
• Price Target Upside: 34.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹2,388.00 ▲(23.17% Upside)

Lupin Limited's overall stock score reflects its strong financial performance and fair valuation, tempered by mixed technical indicators. The company's robust revenue growth and profitability are significant positives, while the technical analysis suggests caution due to bearish momentum signals.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth reflects expanding market penetration and product adoption across geographies. Over a 2-6 month horizon this durable top-line momentum supports reinvestment in manufacturing, commercialization and R&D, strengthening long-term earnings potential.

High Profitability Margins

Consistently strong gross and operating margins indicate manufacturing scale, pricing power and efficient cost control. These margins create a structural buffer versus pricing shocks, fund ongoing R&D and commercialization, and support durable cash generation and return potential.

Balance Sheet Strength

Moderate leverage, a high ROE and a strong equity ratio provide financial flexibility for capex, M&A and R&D investment. This conservative capital structure lowers refinancing risk and preserves strategic optionality through industry cycles, supporting long-term resilience.

Negative Factors

Sharp FCF Contraction

A large year-over-year drop in free cash flow materially reduces internal funding for capex, R&D and dividends. If prolonged, this weak cash generation can force external financing, delay strategic projects and erode the balance sheet’s ability to absorb shocks over the medium term.

Weak Cash Conversion

FCF-to-earnings of 0.40 shows profits are not fully converting to cash, limiting liquidity build-up. Persistent conversion gaps constrain sustainable capital allocation, reduce the cushion for downturns, and can restrict ability to self-fund growth or return capital without raising debt.

Exposure to U.S. Generics Competition

A material reliance on U.S. generics creates structural revenue and margin vulnerability to pricing erosion, bid/tender outcomes and intensified competition. This exposure can produce durable volatility in cash flows and make medium-term forecasting and margin preservation more challenging.

Lupin Limited Business Overview & Revenue Model

Company Description

Lupin Limited, a pharmaceutical company, develops, produces, markets, and sells a range of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs). It offers formulations for use in the therapeutic areas of cardiovascular, diabetology, asthma, pediatrics, central nervous system, gastrointestinal, anti-infective, nonsteroidal anti-inflammatory drug therapy, respiratory, women's health, and anti-tuberculosis. The company is also involved in the provision of biosimilar and over-the-counter products; specialty products; and drug discovery and development programs in the therapeutic areas of oncology, immunology, and metabolic disorders, as well as bio clinical research activities. Lupin Limited network consists of 18 labs, 280 LupiMitra collection centers, and 450 pick-up points. It operates in India, the United States, the United Kingdom, South Africa, Australia, the Philippines, Germany, the Netherlands, Mexico, and Brazil. The company was formerly known as Lupin Chemicals Limited and changed its name to Lupin Limited in 2001 as a result of its amalgamation with Lupin Laboratories Limited. Lupin Limited was founded in 1968 and is headquartered in Mumbai, India.

How the Company Makes Money

Lupin Limited generates revenue through multiple key streams, including the sales of generic pharmaceuticals, branded formulations, and active pharmaceutical ingredients (APIs). A significant portion of the company's income comes from its generic drug portfolio, which includes a variety of medications that are sold at lower prices than their branded counterparts. Additionally, Lupin has a growing presence in the biosimilars market, which contributes to its revenue. The company also engages in strategic partnerships and collaborations with other pharmaceutical firms and research organizations, enhancing its R&D capabilities and expanding its product offerings. Furthermore, international markets, particularly in the United States and Europe, play a crucial role in Lupin's revenue generation, as the company focuses on obtaining approvals for new products and increasing its market share in these regions.

Lupin Limited Financial Statement Overview

Summary

Lupin Limited demonstrates strong financial performance with robust revenue growth, high profitability margins, and a stable balance sheet. The company shows efficient cost management and operational efficiency, though cash flow conversion could be improved.

Income Statement

Lupin Limited has demonstrated strong revenue growth over recent years, with significant improvements in both gross and net profit margins. The gross profit margin for 2025 was 48.9%, indicating efficient cost management, while the net profit margin stood at 14.8%, reflecting strong profitability. Moreover, the company achieved a robust revenue growth rate of 12.9% from 2024 to 2025. The EBIT and EBITDA margins were also healthy at 20.1% and 24.7%, respectively, showcasing operational efficiency. The positive trajectory in these metrics highlights strong financial performance.

Balance Sheet

The balance sheet of Lupin Limited shows a solid equity base with a debt-to-equity ratio of 0.32, indicating moderate leverage. The return on equity (ROE) is impressive at 19.1%, showcasing efficient utilization of equity to generate profits. The equity ratio is healthy at 58.9%, pointing to a strong equity position relative to total assets. While the overall stability is good, potential risks could arise if debt levels increase significantly.

Cash Flow

Lupin Limited's cash flow statement reflects a positive free cash flow growth rate of -51.6% from 2024 to 2025, highlighting some challenges in cash generation. However, the operating cash flow to net income ratio of 0.91 suggests that the company is generating sufficient cash from operations relative to its earnings. The free cash flow to net income ratio stands at 0.40, indicating room for improvement in converting profits into free cash flow. While cash flow management appears stable, enhanced cash conversion could further strengthen financial positioning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	233.76B	227.08B	200.11B	166.42B	164.05B	151.63B
Gross Profit	159.68B	153.27B	128.99B	94.10B	95.05B	94.18B
EBITDA	53.87B	50.51B	36.27B	15.73B	19.66B	25.24B
Net Income	36.99B	32.82B	19.14B	4.30B	-15.28B	12.17B
Balance Sheet
Total Assets	0.00	292.05B	239.97B	229.56B	218.21B	236.10B
Cash, Cash Equivalents and Short-Term Investments	29.90B	42.01B	21.79B	19.52B	21.04B	41.11B
Total Debt	0.00	54.48B	29.22B	45.42B	41.58B	51.29B
Total Liabilities	-172.94B	119.11B	96.24B	104.13B	95.99B	97.52B
Stockholders Equity	172.94B	172.03B	142.90B	124.64B	121.53B	138.03B
Cash Flow
Free Cash Flow	0.00	13.18B	27.19B	3.98B	-5.38B	11.44B
Operating Cash Flow	0.00	30.00B	36.48B	18.97B	3.67B	18.22B
Investing Cash Flow	0.00	-41.72B	-17.12B	-12.87B	12.92B	-12.40B
Financing Cash Flow	0.00	17.32B	-21.84B	-3.37B	-15.72B	-18.85B

Lupin Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1938.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LUPIN, the sentiment is Positive. The current price of 1938.85 is below the 20-day moving average (MA) of 2161.18, below the 50-day MA of 2116.26, and below the 200-day MA of 2004.37, indicating a neutral trend. The MACD of 6.67 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 31.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LUPIN.

Lupin Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUPIN	72 Outperform	₹982.60B	22.71	―	0.57%	15.49%	64.37%
ZYDUSLIFE	72 Outperform	₹890.72B	18.10	―	1.19%	14.01%	14.62%
DRREDDY	70 Outperform	₹1.02T	17.97	―	0.63%	14.10%	9.72%
CIPLA	68 Neutral	₹1.07T	23.52	―	0.87%	6.93%	21.55%
TORNTPHARM	66 Neutral	₹1.34T	62.62	―	0.84%	9.11%	18.76%
MANKIND	59 Neutral	₹877.17B	49.81	―	0.04%	23.22%	-19.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lupin Limited Corporate Events

Lupin Strikes Global Semaglutide Deal With Galenicum Across 23 Markets

Lupin Limited has entered into a licensing and supply agreement, via its subsidiary Lupin Atlantis Holdings, with Spain-based Galenicum Health for finished injectable formulations of Semaglutide, a GLP-1 receptor agonist used in Type 2 diabetes and obesity management. Under the deal, Galenicum will develop, manufacture and supply the product, while Lupin will manage regulatory approvals and commercialization across 23 countries, including Canada, Europe, Southeast Asia and Latin America, sharpening Lupin’s push into the fast-growing GLP-1 market. The partnership is positioned as a strategic milestone that expands Lupin’s Semaglutide portfolio and leverages its existing commercial footprint to scale access to cost-effective diabetes and obesity treatments, while supporting Galenicum’s ambition to become a leading B2B GLP-1 supplier amid surging global demand for these therapies.

Lupin and PolyPeptide Forge Alliance to Boost Global Peptide Supply Chain

Lupin Manufacturing Solutions, a subsidiary of Lupin Limited, has announced a strategic alliance with PolyPeptide Group AG to enhance the global peptide supply chain. This collaboration aims to improve supply chain resilience, operational efficiency, and readiness for the growing peptides market, particularly in metabolic disease therapies. The partnership strengthens LMS’s position as a leading CDMO supplier and enhances PolyPeptide’s role as a trusted partner, ensuring reliable access to specialized materials for large-scale production and supporting the strategic growth of both companies.

Lupin Limited Gains U.S. FDA Approval for First Biosimilar, Armlupeg

Lupin Limited announced that it has received approval from the U.S. FDA for its biosimilar product, Armlupeg (pegfilgrastim-unne), marking its first biosimilar approval. This product, intended to decrease infection incidence in certain cancer patients and increase survival in radiation-exposed patients, will be manufactured at Lupin’s Pune facility. The approval signifies a significant step in Lupin’s strategy to provide affordable and accessible medicines in the U.S., enhancing its biosimilar portfolio and strengthening its market position. The biosimilar market is lucrative, with the pegfilgrastim market alone valued at USD 1,295 million annually in the U.S., indicating potential for substantial revenue growth and impact on stakeholders.

Lupin Limited Faces FDA Inspection Observations at Goa Facility

Lupin Limited announced that the U.S. FDA conducted an inspection at its manufacturing facility in Goa, India, resulting in a Form-483 with seven observations. The company is committed to addressing these observations and maintaining compliance with CGMP standards, which is crucial for its operational integrity and market reputation.

Lupin Launches First PrecisionSphere™ Product in U.S. with Risperidone Injectable

Lupin Limited has launched Risperidone for extended-release injectable suspension in the U.S., marking the first product from its proprietary PrecisionSphere™ platform. This launch, supported by a 180-day CGT exclusivity, underscores Lupin’s commitment to expanding its portfolio of complex injectables and enhancing global access to advanced long-acting treatments. The product is bioequivalent to Risperdal Consta® and is used for treating schizophrenia and bipolar I disorder, with significant market potential in the U.S.

Lupin Limited Receives U.S. FDA Approval for Aurangabad Facility

Lupin Limited announced that it has received the Establishment Inspection Report (EIR) from the U.S. FDA for its Aurangabad facility after a product-specific Pre-Approval Inspection. This achievement highlights Lupin’s dedication to maintaining high standards of quality and compliance, reinforcing its reputation as a trusted provider of healthcare solutions globally. The receipt of the EIR is a significant milestone for Lupin, potentially enhancing its operational capabilities and market positioning, particularly in the U.S., which is a critical market for the company.

Lupin Bioresearch Center Achieves Zero Observations from U.S. FDA

Lupin Limited announced that its Bioresearch Center in Pune received zero observations from the U.S. FDA following a successful inspection and assessment. This outcome underscores Lupin’s commitment to quality and compliance, enhancing its reputation in the pharmaceutical industry and potentially strengthening its market position.