Today I will give you 5 reasons to invest in Lupin @ current share price:–
I am providing the top 5 strong reasons to make a great investment in Lupin and tell you why Current Lupin share price is the best buy.
1. Bluechip available @ discounted price
As we all know Lupin is one of the top pharmaceutical company in India and named after Sun pharma in the pharmaceutical industry but due to recent stock mark crash in Sept 2018 and US investigation on pharmaceutical companies make Lupin share price beaten badly and giving investors to make a good investment to make money.
Currently, Lupin is available @ 860/- per share with a market capitalization of only 38,859.26 Crores.
You can check Current Lupin price here
2. Future is bright because of overseas income
You earn money when the company in which you invested will earn money. We all know most of the pharmaceutical company earn their revenue from overseas country Like America United Nation etc.
The dollar is becoming stronger and stronger and in comparison to dollar-rupee become weaker and weaker due to the heavy import of Crude oil due to increasing consumption.
So, currently 1 $= 74 rs and look like it increases more and if increase more then Lupin will make more money which results in an increase in Net profit so the future is bright.
3. Great Management
It is true that from the last 5 years Lupin has not performed well but it is also true that there is always ups and downs in every industry whether it is IT or pharmaceutical or any other.
If management is good then sure it is a buying opportunity when there is slow down in the industry because we have to think long term(8-10 years), not short term(1-3 years).
No doubt that Lupin has great management and when the time will come then Lupin will perform exceptionally strong due to undervalued price.
4. Increasing demand and evergreen business:-
As we know today world population is increasing exponentially and due to increasing population and advancement with time a new type of disease also increasing so need of medicine will also increase with time.
From reading above you understood that growth is confirmed in these industries and hence with increasing demand will result in increased revenue and net profit which result you will earn a great return.
Also, it is not easy to sell medicine in the United States of America, so there is a limited competition in this field.
5. Available at reasonable P/E
I suggest to each of my followers to see the stock industry P/E and Stock P/E before buying any stock and many of you know why it is important if you know the true meaning of P/E.
P/E is more than Price to earning ratio and I am saying this because it tells us how costly the stock is.
currently, Lupin is available @ 27 PE which is very reasonable if you are buying.
Some more reason in support of Lupin
Now, I am going to give you one more solid reason other than above which help you to take the decision whether t invest in lupin or not and you can understand the forecast of Lupin share price.
Let suppose you managed to get 1 lakh rupees from your father to invest in the stock market.
Now, as a new in this field for you what you can expect is to not to lose the money at any cost so, your main motive is to invest in a good quality stock with a good performance of track record so that there must be a maximum chance of profit.
Now, let suppose you have analyzed the good quality stock named HDFC Bank and there is no doubt that HDFC bank is one of the top quality stock in national stock exchange.
and you decided to invest in HDFC Bank which is trading on 5 lakh crore market capitilization so for HDFC bank it is very difficult to get double even in the next 5 years but whereas if you see at Lupin it is bit easier fo lupin to get even triple very easily and this is because market capitalization of lupin is very low in comparison with HDFC Bank.
Now, the question arises is why I invest in Lupin instead of HDFC Bank (HDFC Bank is a more safe investment)?
The answer is if you want safe investment than keep your money in Fixed Deposit and don’t invest in the stock market.
I know HDFC bank is safer than Lupin but Lupin had also a very good track record and it an opportunity for investors that it is available at cheaper price.
SO, If you decided to invest in the stock market then don’t expect that you cannot lose money also don’t invest in the too risky stock.
I think After reading above all 5 points you understood why mutual funds and top investors like Rakesh Jhunjhunwala invested their money in Lupin.
I know current Lupin share price is nearly half of its all-time high but don’t forget that it is also a Multibagger Stock who surge from 100 rs to 1800 rs in 10 years time.
if you have other thought about Lupin then please tell me in the comment box.
Disclaimer:- Please invest @ your own risk Equitypaisa.com or owner of Equitypaisa.com is not responsible for any loss you made on your investment due to the above information.