Lupin reported a net profit of Rs.289 crore in the March quarter compared to a loss of Rs.783 crore in the March quarter of the previous year. The EBITDA was also higher by nearly 13% in the quarter. Lupin has also grown its America sales by 16% in the latest quarter. In terms of performance metrics the stocks looks to be OK and at the current price of Rs.779 it is quoting at just about 25 times pat earnings.

However, you need to be cautious because there is a recent US lawsuit against Indian pharma companies and Lupin’s name is also mentioned in the lawsuit. These companies have been accused of fixing prices and deliberately inflating prices of generics in the US markets. This is an issue that is taken very seriously in the US markets as Indian companies are already under pressure due to FDA investigations. It is better to avoid the stock till there is clarity on the US lawsuit front.