Lupin faces pressure as Citi turns bearish

shares came under pressure on August 27 after falling as much as 1.8% to a six-month low, before recovering most of the losses during afternoon trade. The stock was trading around ₹2,184, nearly flat from the previous close. The weakness followed Citi’s downgrade of Lupin to ‘Sell’, with the brokerage sharply cutting its target price to ₹2,050 from ₹2,540 earlier. Citi expects pressure on Lupin’s US business, pointing to weaker momentum in its base portfolio and limited visibility on replacing high-margin products such as generic Jynarque and generic Myrbetriq. The brokerage expects US sales to decline from around $1.3 billion in FY26 to $975 million by FY29, while EBITDA margins could fall from 30% in Q1 FY27 to around 20% by FY29. However, the negative view was partly offset by Bernstein, which retained its ‘Outperform’ rating with a ₹2,707 target. Bernstein highlighted Lupin’s recent patent win for generic Kalydeco (ivacaftor), which could allow an immediate launch in the US and provide 180 days of exclusivity. The contrasting brokerage views leave the stock at an important juncture, with investors likely to focus on the company’s US pipeline, product launches and ability to sustain margins.