It may take another quarter for Lupin to post a robust show

Mumbaibased pharma company Lupin has posted better-than-expected numbers after reporting dismal figures for four successive quarters. According to the company, the flu season in the US and price hike in one of its drugs helped boost the numbers.

For the coming quarter and this financial year, the management has given healthy double-digit growthguidance. But despite a strong performance and guidance, analysts have mixed views on the stock. A report by IDFC Securities has given a positive rating to the stock, saying that the launch of the new drug Glumetza in the current quarter and price hikes in some drugs will boost earnings.

However, a Kotak report has recommended a reduce rating, citing certain assumptions in the benefits of price hike as unrealistic and saying there could be headwinds in the approvals for some drugs.

Another factor that will decide the performance of Lupin’s stock is its integration with Gavis, a recently acquired firm. Lupin will be integrating Gavis’ business in the current quarter and the impact will be seen only in the results of this quarter.

On Gavis, the management said that its revenues can triple in the next three years. Lupin is also looking at more acquisitions. In a discussion with ET, the management said that it is evaluating assets in the US and outside as well in the speciality and technology areas. Investors may want to wait for the March quarter numbers which will reflect the benefits of the drug Glumetza launched in February and also Gavis’ numbers.