Lupin Ltd.
ISIN: INE326A01037 • Market Cap: ₹1.02 Lakh Cr
The 5-Pillar Quality Audit for Lupin Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (31.8%), Return on Capital Employed (31.3%), and equity compounding (23.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.26 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (14.4%) and 3Y PAT CAGR (42.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 18.36 vs PEG of 1.84 and Dividend Yield of 0.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 46.9%, backed by 47.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 31.3%)
Lupin Ltd. generates exceptional return on capital employed of 31.3%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 23.8%)
Shareholder equity compounds at a healthy 23.8%, exceeding average Indian equity benchmarks.
High-Velocity Profit Compounding (3Y PAT CAGR: 42.6%)
Net earnings have compounded at 42.6% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 18.36)
Trading at a P/E multiple of 18.36, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (47.1%)
Mutual funds, domestic DIIs, and foreign FIIs hold 47.1%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking LUPIN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 84/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Healthcare Sector Peer Comparison
Compare LUPIN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Lupin Ltd. (LUPIN)Current | 84/100 | ₹1.02 Lakh Cr | 18.36 | 31.3% | 0.26 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Lupin Ltd.
Q:What is the 5-Pillar Fundamental Score for Lupin Ltd. (LUPIN)?
Lupin Ltd. has a RupeeTools Fundamental Score of 84/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (96/100), Financial Health (83/100), Growth (85/100), Valuation (68/100), and Ownership Quality (82/100).
Q:Is LUPIN fundamentally strong for long-term investment?
Yes, LUPIN exhibits solid fundamental strength with a 84/100 score, driven by a return on equity of 23.8% and a debt-to-equity ratio of 0.26.
Q:Does LUPIN pass the Coffee Can Investing filter?
Yes! LUPIN satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does LUPIN compare against other Healthcare peers?
Within India's Healthcare sector, LUPIN trades at a P/E of 18.36 and generates an ROCE of 31.3%. Compare its 5-Pillar score of 84/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.