On Lupin, the brokerage firm has an ‘underperform’ rating with a target price of Rs 640, which is marginally higher than its previous close of Rs 620. It believes that Lupin may need to take tough decisions for sustainable margin improvement.
The brokerage said Lupin’s EBITDA margin pressure is mainly due to underutilized capacities for the US. It added that US launches from H2FY23 can only give a temporary relief on the margin front. It has cut its EPS estimates by 9-16 per cent for FY23-25CL.
On the other hand, CLSA is bullish on as it believes that the company is better placed on the liabilities front than other HFCs. It has ‘buy’ rating and a target price of Rs 420 on the counter, signalling an upside of 30 per cent.
LIC Housing’s spread will improve in FY23 but may contract in FY24, said CLSA. “Home loan yields have risen 80-90 basis points for the industry in the past three months but multiples are at Covid lows.”
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