Lupin, Oracle Financial Services Top 2 Stocks Which Can Fetch up to 13% Return


by Sandip Das on 8 January 2024,  6 min read

Lupin, Oracle Financial Services Top 2 Stocks Which Can Fetch up to 13% Return - MyDhanush Blogs by Ashika

Indian equity market ended on a flat note last week. Mixed cues from global markets and resilient labor market data from the US dampened expectations of multiple interest rate cuts by the Federal Reserve this year. The latest Fed meeting minutes shed little light on when rate cuts might begin.

Meanwhile the geopolitical tension – the risks of the Israel-Gaza conflict has been morphing into a wider regional conflict.

Back home amid a lack of direction from global markets, our market too had been trading cautiously. While auto sales for December are in line with estimates, GST collections rising 10 percent YoY in the month, strong monthly business updates from leading banks emphasizing robust credit growth, and domestic air traffic reaching a record monthly high in December have been providing impetus to the investors.

Due to limited new catalysts beyond the imminent third-quarter earnings and concerns surrounding the stretched valuation, a cautious outlook is justified.

Here are the top 2 stocks to buy which can fetch up to 13% return:
Oracle Financial Services Software (OFFS) | CMP: Rs 4456 | Target: Rs 5000 | Upside: 12.2%

OFSS signed a new license worth $27.4 million in Q1FY24 as it added 18 new deal wins (25 product modules). License revenues on TTM basis stood at $97 million up 4 percent on a YoY basis. Commentary on deal wins and pipeline suggests sustained traction with no challenges impacting demand at the macro level across regions.

Also read: YES Bank, Tata Motors, Jio Financial – Most Shareholders Are Invested in These Companies

Lupin | CMP: Rs 1393 | Target: Rs 1575 | Upside: 13.1%

In Q2FY24, Lupin received approval to launch the generic version of Spiriva, utilized for treating a chronic obstructive pulmonary disorder, in the US market. It is gaining market share which is at 24 percent after 18 weeks of the launch. Given the lack of an authorized generic, the company expects to improve its market share without facing major pricing erosion over the next couple of years (till FY26).

Higher US sales are likely to aid in improving its operating profit margins to 21 percent in FY26 from 13 percent margin in FY2022. In addition, the company is strengthening its respiratory portfolio through acquisitions.

Lupin anticipates that its strong product pipeline will drive increased revenues in the US market moving forward. In the domestic market, the company is also aiming to grow faster than its peers. It has enhanced its sales force count by 1,300 and is witnessing higher sales in diabetes, cardiology, and respiratory categories.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

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