Check Before You Invest : Lupin Ltd

Q: Which industry/sub-sector does Lupin Ltd belong to?

Lupin Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Lupin Ltd a good quality company?

Lupin Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Lupin Ltd undervalued or overvalued?

Lupin Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 19.59, Historic Median: 31.16. Price to Book, Current: 4.65, Historic Median: 4.95. Price to Sales, Current: 3.8, Historic Median: 3.87. EV to EBITDA, Current: 11.34, Historic Median: 19.62

Q: Is Lupin Ltd a good buy now?

Lupin Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Lupin Ltd?

Lupin Ltd revenue growth is 13.5% for FY-2025, which is above its 5-year CAGR of 8.11%, indicating faster growth.

Q: Gross Profit margin of Lupin Ltd?

Lupin Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025, which is above its 5-year median of 9.1%, indicating increasing margins.

Q: Operating Profit Margin of Lupin Ltd?

Lupin Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.26% for FY-2025, which is above its 5-year median of 17.53% indicating increasing margins.

Q: Net Profit Margin of Lupin Ltd?

Lupin Ltd Net Profit Margin is 14.56% for FY-2025, is above its 5-year median of 8.1%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.9, Historic Median: 9.1. Operating Profit Margin (%), Current: 23.26, Historic Median: 17.53. Net Profit Margin (%), Current: 14.56, Historic Median: 8.1

Q: Return on Asset of Lupin Ltd?

Lupin Ltd Return on Asset is 12.63%, which is above its 5-year historical median of 5.09%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Lupin Ltd?

Lupin Ltd Return on capital employed is 21.97% for FY-2025, which is above its 5-year historical median of 9.71%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Lupin Ltd

Snapshot

Q.1 Which industry/sub-sector does Lupin Ltd belong to?

Lupin Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Lupin Ltd a good quality company?

Lupin Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Lupin Ltd undervalued or overvalued?

Lupin Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	19.59	31.16
Price to Book	4.65	4.95
Price to Sales	3.8	3.87
EV to EBITDA	11.34	19.62

Q.4 Is Lupin Ltd a good buy now?

Lupin Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Lupin Ltd?

Lupin Ltd revenue growth is 13.5% for FY-2025, which is above its 5-year CAGR of 8.11%, indicating faster growth.

Q.2 Gross Profit margin of Lupin Ltd?

Lupin Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025, which is above its 5-year median of 9.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Lupin Ltd?

Lupin Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.26% for FY-2025, which is above its 5-year median of 17.53% indicating increasing margins.

Q.4 Net Profit Margin of Lupin Ltd?

Lupin Ltd Net Profit Margin is 14.56% for FY-2025, is above its 5-year median of 8.1%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.9	9.1
Operating Profit Margin (%)	23.26	17.53
Net Profit Margin (%)	14.56	8.1

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Lupin Ltd?

Lupin Ltd Return on Asset is 12.63%, which is above its 5-year historical median of 5.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Lupin Ltd?

Lupin Ltd Return on capital employed is 21.97% for FY-2025, which is above its 5-year historical median of 9.71%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Lupin Ltd?

Lupin Ltd Return on equity is 21.13% for FY-2025, which is above its 5-year historical median of 9.47%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Lupin Ltd?

Lupin Ltd Cash conversion cycle is 35 days, below its 5-year historical median of 50 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.42	1.32
ROE (%)	21.13	9.47
ROCE (%)	21.97	9.71
Cash Conversion Cycle	35 days	50 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Lupin Ltd?

Lupin Ltd Debt-to-Equity ratio is 0.30, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Lupin Ltd?

Lupin Ltd Debt to cash flow from operations is 1.69, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Lupin Ltd?

Q.1 Promoter shareholding and pledge status of Lupin Ltd?

Promoters hold 46.86% of the Lupin Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Lupin Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Lupin Ltd vs industry peers?

Lupin Ltd revenue CAGR is 8.11%, compared to the industry median CAGR of 9.13%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	13.5	9.1
Gross Profit Growth (%)	43.2	13.2
Operating Profit Growth (%)	39.3	13.2
Net Profit Growth (%)	70.8	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.42	0.87
ROE (%)	21.13	18.75
ROCE (%)	21.97	20.47
Cash Conversion Cycle (days)	34.59	63

Valuation & price assessment

Q.1 Stock return of Lupin Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	4.3%	13.5%	43.4%	16.1%

Q.2 Valuation ratios of Lupin Ltd vs historical?

The current P/E ratio of 19.59 is lower than its historical median of 31.16, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	19.59	31.16	31.09
Price to Book	4.65	4.95	2.85
Price to Sales	3.8	3.87	2.82
EV to EBITDA	11.34	19.62	15.99

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Check Before You Invest : Lupin Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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