The other trigger would be growth in the domestic market, which accounts for about a third of sales. Analysts expect the company, which recorded growth of 13.4 per cent in domestic formulations for 9MFY20, to outperform the sector. With chronic medications expected to outperform the acute category for FY21, Lupin
should benefit as the chronic segment accounts for 61 per cent of its domestic sales — the highest across peers. About a fifth of sales is contributed by anti-diabetes (both own and licensed) medications, where visibility over the next couple of years appears robust.
Apart from regulatory issues, the near-term movement in the stock will depend on March quarter results. The company is expected to post strong margins, driven by robust sequential growth in the US market. This would be led by market share gains, new launches, and seasonal demand uptick.
Brokerages, such as Motilal Oswal Financial Services, are positive on the company because of limited price erosion in the base business, robust new-launch pipeline, and better-than-industry growth in branded domestic formulations.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.