Lupin stock gains after pharma major carves out consumer healthcare unit

Lupin Ltd shares increased by 1.56 per cent during Tuesday's late trading session, reaching an intraday high of Rs 1,968. This rise followed the announcement of the company's strategic decision to carve out its consumer healthcare business into a new wholly-owned subsidiary, named LupinLife Consumer Healthcare Ltd, effective July 1, 2025.

The move is part of Lupin's broader strategy to create a specialised consumer healthcare entity, particularly aimed at capitalising on India's burgeoning self-care market. "This initiative aligns with the aspiration to establish a specialised consumer healthcare entity," Lupin stated.

Since its inception in 2017, LupinLife Consumer Healthcare has built a robust portfolio of over-the-counter healthcare products, including Softovac, Beplex Forte, Corcium, and Aptivate.

Anil Kaushal has been appointed as the Chief Executive Officer (CEO) of the newly formed entity. Lupin believes that under his leadership, the restructuring will enable enhanced focus and targeted investments.

The strategic carve-out is expected to result in increased consumer impact and market expansion. Lupin aims to leverage this move to accelerate growth in the consumer healthcare segment.

Technically, Lupin's scrip trades above its 5-day and 10-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. The 14-day Relative Strength Index (RSI) stood at 50.11. RSI values above 70 are considered overbought, while those below 30 suggest oversold conditions.

According to data from the BSE, the stock currently commands a price-to-earnings (P/E) ratio of 22.62 and a price-to-book (P/B) value of 4.09. It reported earnings per share (EPS) of 87.02 and a return on equity (RoE) of 18.08. Trendlyne data shows a one-year beta of 0.81, pointing to low stock volatility.

As of March 2025, promoters held a 46.92 per cent stake in the pharma player.