Lupin Limited

LUPIN.BO•drug-manufacturers-specialty-generic

Current Price

1,958.95INR

per share

Fair Value

1,019.83INR

Overvalued

92.1%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.46%, lower than industry average of 12.71%.

Growth Trajectory

Profitability

In the growth phase company makes 20.71% profit on every dollar of sales, higher than industry average of 20.42%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.28% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

490.72B INR

Equity Value

465.61B INR

FCF Yield

41.92%

Average ROIC

18.87%

Cost of Capital

9.77%

P/E Ratio

22.33x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	228.42B INR	196.56B INR
Operating Income or EBIT	50.06B INR	28.94B INR
Interest Expense	2.94B INR	2.79B INR
Book Value Of Equity	172.03B INR	142.90B INR
Book Value Of Debt	54.48B INR	29.22B INR
Cash and Marketable Securities	30.20B INR	21.79B INR
Number of Shares Outstanding	456.57M	--
Minority interests	831.60M INR	0 INR
Current Stock Price	1958.95 INR	--
Effective Tax Rate	20.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+3.49%

16.20%Company

12.71%Industry

Above Industry

Operating Margin

+1.50%

21.91%Company

20.41%Industry

At Industry Level

Lupin Limited shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 59% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	287.79B INR	Add
Present Value (Cash Flow Over Next 10 Years)	202.93B INR	Add
Value of Operating Assets	490.72B INR	Sub-total
Debt	54.47B INR	Subtract
Minority Interests	831.60M INR	Subtract
Cash	30.20B INR	Add
Value of Equity	465.61B INR	Sub-total
Number of Shares	456.57M shares	Divisor
Estimated Value per Share (Fair Value)	1.01K INR	Total
Current Market Price	1.95K INR	Reference

Financial Projections

Total FCF Present Value

202.93B INR

Avg Revenue Growth

6.21%

Avg Operating Margin

20.44%

Avg ROIC

18.87%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	240.33B INR	260.68B INR	282.74B INR	306.67B INR	332.63B INR	358.24B INR	383.10B INR	406.76B INR	428.77B INR	448.71B INR	469.58B INR
Growth Rate	5.21%	8.46%	8.46%	8.46%	8.46%	7.70%	6.93%	6.17%	5.41%	4.65%	4.65%
PROFITABILITY
Operating Income	52.67B INR	55.04B INR	58.56B INR	62.29B INR	66.23B INR	71.33B INR	76.28B INR	81.00B INR	85.38B INR	89.35B INR	93.51B INR
Operating Margin	21.91%	21.11%	20.71%	20.31%	19.91%	19.91%	19.91%	19.91%	19.91%	19.91%	19.91%
EBIT (1-tax)	42.13B INR	44.03B INR	46.85B INR	49.83B INR	52.99B INR	55.64B INR	57.98B INR	59.94B INR	61.47B INR	62.54B INR	65.45B INR
CASH FLOW
Reinvestment	13.79B INR	14.96B INR	16.23B INR	17.60B INR	17.37B INR	24.49B INR	23.31B INR	21.69B INR	19.64B INR	20.55B INR	34.27B INR
Free Cash Flow	28.33B INR	29.06B INR	30.62B INR	32.23B INR	35.61B INR	31.15B INR	34.66B INR	38.24B INR	41.83B INR	41.98B INR	31.18B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	737.13B INR
Present Value	25.69B INR	23.89B INR	22.82B INR	21.78B INR	21.83B INR	17.35B INR	17.60B INR	17.74B INR	17.78B INR	16.39B INR	—
EFFICIENCY
ROIC	21.46%	20.95%	20.81%	20.65%	20.46%	20.13%	19.27%	18.49%	17.77%	17.11%	8.88%
Cost of Capital	10.28%	10.28%	10.28%	10.28%	10.28%	10.00%	9.72%	9.44%	9.16%	8.88%	8.88%
Sales/Capital	1.47x	1.47x	1.47x	1.47x	1.47x	1.01x	1.01x	1.01x	1.01x	1.01x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)