Lupin share witnesses a strong rally of 5% after Kotak Institutional Equities’ double upgrade to ‘add

In early trade on Thursday, July 4, shares of pharmaceutical company Lupin gained more than 5% as a result of a double upgrade from brokerage Kotak Securities. The price of Lupin shares opened at ₹1645, up from its previous closing of ₹1630.80. It then increased by more than 5% to ₹1,714.10. At around 10:05 am, the shares, however, pared some gains and traded 2.85 percent higher at ₹1,677.20.

Kotak Institutional Equities (Kotak Securities), a brokerage company, has upgraded Lupin stock from a “sell” to an “add,” increasing the stock’s fair value from ₹1,400 to ₹1,805. This suggests that the stock might rise by around 11% from its previous closing price.

In a statement, Kotak stated, “Our analysis of Lupin’s US portfolio leads us to believe that it is well-poised to surprise positively on Street’s estimates in the US in FY25E/26E. While we remain cognizant of not ascribing a high multiple to one-off earnings, we highlight Lupin has a bunch of products lined up, which will ensure a limited earnings dip in FY2027E after a strong FY2026E.”

“We raise FY25-27E EPS (earnings per share) by 3-16 per cent with our FY25/26E EPS now being 6/13 per cent higher than Street. We double upgrade Lupin to ‘add’ from ‘sell’ with a fair value of 1,805,” said Kotak.

At 11:00 am, Lupin shares were trading 5.38%  at 1718.65.

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