Lupin Ltd - Safe Bet

CMP: 391


Lupin Limited manufactures bulk actives and formulations. The principal bulk actives manufactured by it include Rifampicin, Pyrazinamide, Ethambutol (anti-TB), Cephalosporins (anti-infectives) and cardiovasculars. The company also possesses competencies in phytomedicines, in which medicines are made out of plant and herbal resources supported by the discipline of modern medicine.

Lupin is a safe large cap and is a great buy as markets have corrected and is looking healthy. Rakesh Jhunjhunwala holds 3% stake in Lupin. Lupin's revenues have grown steady and has not dipped once in the last 5 years. NPM has improved from 10% to 20% over the last 5 years is still improving marginally. Liabilities are minimal which augers well for the company's growth. Its currently trading at a P/E of 24. Buy, Accumulate on dips and hold for long term gains.