Lupin shares may see up to 16% upside post Q3, analysts say — should you buy?

Shares of Lupin Ltd. are in focus on Monday, February 16, as analysts are largely positive on the stock post its third quarter earning and management guidance.

While Citi and Jefferies have 'buy' recommendations on the stock, Morgan Stanley has an 'equal-weight' rating.

Citi

Citi has a 'buy' rating with a target price of ₹2,540 per share on Lupin, indicating a nearly 16% potential upside from its previous close.

It said the company's third quarter earnings before interest, tax, depreciation and amortisation (EBITDA) increased 62% from the previous year, while exclusivity products contributed over $120 million.

It said the FY26 margin guidance was raised to 27-28%, while FY27 was at 24-25%.

Citi said earnings per share (EPS) have been raised 22%, 17% and 2% for FY26, FY27 and FY28, respectively.

Jefferies

Jefferies has a 'buy' rating on Lupin with a target price of ₹2,540 per share, a potential upside of nearly 16% from its previous close.

It said Lupin's third quarter was beat on strong US sales and operating leverage.

Lupin reported a robust FY26 US pipeline, including first-to-file (FTF) and injectables, Jefferies said.

The analyst added that Lupin's FY27 margins were sustainable at 24-25% and EPS was raised 705%.

Morgan Stanley

The brokerage has an 'equal-weight' rating on Lupin with a target price of ₹2,386 per share, a nearly 9% potential upside from its previous close.

It said Lupin's beat was led by strong US exclusivity sales. Its FY26 margins are at 27-28%, FY27 has been normalised to 24-25%, it said.

The analyst said Lupin's US revenue is set to stay over $1 billion, with a shift to biosimilars/institutional growth. It added that the company's India business will outpace IPM with chronic focus and semaglutide launch.

Of the 40 analysts that have coverage on the Lupin stock, 28 have a 'buy' rating, nine have a 'hold' rating and three have a 'sell' rating.

Lupin shares ended the previous session 0.8% lower at ₹2,194 apiece. The stock has gained 11.5% in the past six months.

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