The brokerage says Lupin "sees triggers from launch of limited competition products like Tricor and Cipro OS in the U.S. market that can lead to a potential 11-13 percent upgrade to our and consensus FY13 EPS".
CLSA also adds that consumer staple stocks would cease to be defensive bets given the valuation premium at an all-time high implies potential slowdown in GDP growth has not been factored in.
The stock is trading up marginally by 0.3 percent to Rs 238.3 per share. Earlier this month, the company reported a three percent decline in its total sales in June to 64,341 units. The company’s domestic sales of commercial and passenger vehicles for the month declined 5% to 58,270 units against 61,266 units in June last year.
Last month the company had lowered production of its two small cars, Nano and Indica by one-fifth. Commenting on the development, a spokesperson had informed that this was to align the production with market demand.
(With inputs from Reuters)