Motilal Oswal - Lupin Limited (LUPIN) MOSL: LUPIN (Buy)-Announces sale of Kyowa biz-Deal to improve financial leverage, boost inorganic prospects

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Motilal Oswal

Tushar Manudhane

EUR 120.00 For Business Accounts Only

MOSL: LUPIN (Buy)-Announces sale of Kyowa biz-Deal to improve financial leverage, boost inorganic prospects

Lupin: Announces sale of Kyowa biz; Deal to improve financial leverage, boost inorganic prospects

(LPC IN, Mkt Cap USD4.7b, CMP INR736, TP INR860, 17% Upside, Buy)

Lupin (LPC) has announced the sale of its entire stake in Kyowa Pharma to Unison, subject to customary closing conditions, including approval by the company’s shareholders.
The stake will be sold at an enterprise value (EV) of INR37b, which implies EV/sales of 2x. This, in our view, is fair valuation, given the adverse pricing scenario in the Japanese generic pharma market.
Net cash inflow of INR21b (post-tax) would help LPC to pare debt over the near term and look for acquisitions in the focus markets of the US/India over the medium term.

13/11/2019 6 EN

Underlying

Lupin Limited

Lupin is a pharmaceutical company. Co. produces, develops, and markets a range of branded and generic formulations and active pharmaceutical ingredients (APIs) in India, the United States, and Japan. Co. offers various formulations for use in the areas of cephalosporin, cardiovascular (CVS), central nervous system (CNS), anti-asthma, anti-tuberculosis, diabetology, dermatology, gastro intestinal, and other therapy segments; and APIs for use in therapeutic areas of antibiotics, anti-tuberculosis, CVS, CNS, analgesics, and anti-gout. Co. also develops and out-licenses its drug delivery technologies and platforms; and creates and develops biosimilars for various therapeutic indications.

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INE326A01037 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Tushar Manudhane

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MOSL: LUPIN (Buy)-Announces sale of Kyowa biz-Deal to improve financial leverage, boost inorganic prospects

Lupin and Exeltis Announce Reimbursement Approval of NaMuscla® in Spain for the Symptomatic Treatment of Myotonia in Adults with non-dystrophic myotonic (NDM) Disorders

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MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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