Lupin Shares Surge 3% After Investec's Upgrade to 'Buy'

Shares of Lupin rose more than 3% on September 12, extending their winning streak to a sixth straight day after brokerage firm Investec turned positive on the stock.

Global brokerage Investec upgraded Lupin to a ‘buy’ from the previous ‘hold’ and also lifted its price target by 8% to ₹2,265. The revised target implies a potential upside of about 14% from Thursday’s closing price.

The brokerage sees Lupin to be well positioned to benefit from the emerging GLP-1 therapy opportunity in India, further adding that valuations for the stock have become more attractive after the recent pullback.

Lupin’s stock has shed 17% since touching its record high of ₹2,402.90 at the start of the year. The correction has left the drugmaker’s shares trading at 22.5 times estimated FY27 earnings, significantly below the company’s five-year average multiple of 32 times.

On earnings, Investec expects a strong FY26, followed by a period of moderation in FY27, with growth momentum resuming in FY28. That trajectory, combined with the sector tailwinds, underpins the brokerage’s more constructive stance on the drugmaker.

With Friday’s gains, Lupin shares continue to claw back ground lost earlier in the year, as investors respond positively to the prospect of steady growth and improving valuations.

Param Desai, Research Analyst at Prabhudas Lilladher also shared a similar bullishness over Lupin. With the blockbuster cancer drug Revlimid, going off patent in early 2026, several drugmakers depending on the drug will see its benefits tapering off significantly towards the second half of FY26.However, Lupin is unlikely to feel the hit since the drugmaker doesn't have any exposure to Revlimid, but it does have an interesting US pipeline, which makes the stock one of Desai’s top picks within the pharma space.

In another development last week, Lupin also bagged an approval from the US Food and Drug Administration for an injectable that is used to treat Schizophrenia and bipolar disorder. The drug has an estimated annual sales of $190 million in the US, as per IQVIA MAT July 2025.