Lupin share price hits 52-week high, up about 65% in a year; should you buy or book profit?

Lupin share price rose over 4 per cent to hit its fresh 52-week high of 1,078 in intraday trade on BSE on Friday (August 4), looking set to extend their gains into the fifth consecutive session. Shares of the company jumped a day after the company reported its June quarter scorecard.

Lupin reported a consolidated net profit of 453.33 crore for Q1FY24 against a consolidated net loss of 86.82 crore in the same quarter of the previous financial year. Total revenue from operations for the quarter stood at 4,814.06 crore against 3,743.84 crore in the same quarter last year.

In the last three months, Lupin shares have risen over 46 per cent against a 7 per cent gain in the equity benchmark Sensex. In the last one year, they are up 65 per cent against a 12 per cent gain in the Sensex index. On a monthly basis, Lupin shares have been in the green since April 2023.

We talked to analysts to understand what is the road ahead for Lupin stock and whether one should buy it at this juncture or book profit. Here’s what they said.

Fundamental views

Prathamesh Masdekar, Research Analyst, Stoxbox

We believe Lupin has witnessed traction for the last few months led by its healthy revenue and improved profitability from the last two quarters.

The strong performance was aided by niche launch in gSpiriva and Cyanocobalamin nasal spray. These products will likely play a pivotal role in the FY24 earnings revival as well. At the current juncture, the valuation of the company looks attractive.

Thus, we believe that the long-term growth outlook for Lupin remains intact, and is expected to deliver robust performance in upcoming quarters.

Technical Views

Gaurav Bissa, VP, InCred Equities

Lupin was one of the large-cap stocks which witnessed a reversal earlier than the pharma index.

The stock has been forming a double bottom pattern on the weekly charts after correcting sharply and swiftly since 2015.

This was followed by some consolidation which then resulted in the formation of a smaller double-bottom pattern on the daily charts.

The stock triggered a double bottom breakout after closing above the neckline placed at 790 level which also confirmed trend reversal which pushed the stock towards 1,000.

The stock has recently closed above its previous swing high level of 965 implying it may continue to rise till it sustains above 965.

The next major resistance is seen at 1,180 level, suggesting long-term investors can continue to hold the stock with a trailing stop loss placed at 965.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

After bottoming out near 650 level it has risen around 60 per cent. Currently, it is approaching its stiff resistance of 1,080-1,100 along with overbought condition in weekly RSI.

One needs to avoid fresh buying now. And one should try to book partial profits near the resistance mentioned above. As of now, no new longs are advised.

View Full Image

Lupin share’s technical chart.

Overall, experts hint that the stock remains a decent long-term buy but for the near term, one can consider booking some profit in it.

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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 04 Aug 2023, 01:52 PM IST

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