pharma
Lupin
LUPIN · Nifty 50
₹2,272
Price 2026-06-17
At a Glance
Fundamental
100/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Lupin scores 100/100 on fundamentals (strong). Lupin: BROAD EXPANSION regime.
Fundamental Score: 100/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 20.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 20.61% is strong margin-driven and stable. Net margin of 17.6% × asset turnover of 0.68x × leverage of 1.7x.
What This Means
Net margin of 17.6% means the company keeps ₹17.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.68x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
72.6%
Operating
23.6%
Net
17.6%
Gross margin 72.6% → operating margin 23.6% → net margin 17.6%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 14.8x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.9x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 20.1% — strong cash generation. Business is self-funding.
Peer Comparison
Lupin is compared against 10 peers in the pharma sector.
Key Watchpoints
Breaks above ₹2386 (+5%)
Trend reversal confirmation
Breaks below ₹2158 (-5%)
Further downside risk
Pharma sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
One-off items significantly inflating reported profit. Core earnings may be much lower.
Special charges of ₹2941K Cr. May indicate restructuring, impairment, or one-time costs.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Tight liquidity. Monitor cash position and access to credit lines.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes