Buy Lupin, target of 
1402: IIFL
Bangalore: By looking at its market performance, IIFL has recommended a buy rating on Lupin with a target price of 
1402. According to Bino Pathiparampil, Stock Analyst at IIFL, Lupin has outperformed the Sensex by 26 percent over last one year.
Lupin is an India-based pharmaceutical company, which develops and markets a range of generic formulations and Active Pharmaceutical Ingredients (APIs) around the world. The Further development on the U.S. Food and Drug Administration (FDA) issue at its Mandideep facility will be a key event in the near term - management is increasingly confident of an early resolution and IIFL believes that the risk/reward matrix is still in favor of the stock. An analysis of FDA's recent warning letter to Apotex, which later got escalated to an import alert, supports IIFL's view that the Mandideep issue is unlikely to escalate further. On the other hand, FDA clearance could be a major near-term trigger.
Apart from this, Pathiparampil feels that the sustained earnings growth quarter after quarter, and problems faced by other players in the pharma space, can significantly accelerate the re-rating process. With the recommended target price of 1402, if the stock is bought at Thursday's closing price of 1,120.75, the percentage of gain would be 25.09 percent.
1402. According to Bino Pathiparampil, Stock Analyst at IIFL, Lupin has outperformed the Sensex by 26 percent over last one year.
Lupin is an India-based pharmaceutical company, which develops and markets a range of generic formulations and Active Pharmaceutical Ingredients (APIs) around the world. The Further development on the U.S. Food and Drug Administration (FDA) issue at its Mandideep facility will be a key event in the near term - management is increasingly confident of an early resolution and IIFL believes that the risk/reward matrix is still in favor of the stock. An analysis of FDA's recent warning letter to Apotex, which later got escalated to an import alert, supports IIFL's view that the Mandideep issue is unlikely to escalate further. On the other hand, FDA clearance could be a major near-term trigger.
Apart from this, Pathiparampil feels that the sustained earnings growth quarter after quarter, and problems faced by other players in the pharma space, can significantly accelerate the re-rating process. With the recommended target price of 1402, if the stock is bought at Thursday's closing price of 1,120.75, the percentage of gain would be 25.09 percent.