Jefferies has revised its stance on Lupin, upgrading it from Underperform to a Hold rating, while concurrently increasing the target price from Rs 1,190 to Rs 1,460 per share.

The recommendation comes on the heels of a projected 4-7% increase in FY25/26 revenue, attributed to heightened revenue from India and gSpiriva, the latter enjoying a greater market share in the absence of competition. Jefferies identifies these segments as high-margin contributors, foreseeing an 8-14% rise in earnings per share (EPS).

Aligned with the ongoing re-rating of the pharmaceutical sector’s valuations, Jefferies has adjusted the target price-earnings (PE) multiple to 22x, up from 20x. This adjustment yields a revised target price of Rs 1,460, reflecting the positive outlook on Lupin’s performance.