Thursday, market expert Sandeep Jain said again that he thinks Lincoln Pharmaceuticals will go up in price and set a price goal of Rs 750, which is about 12% above where the stock is now. This caused shares of the company to jump almost 7% to Rs 675.
Since investors became aware of Lincoln’s strong export growth and healthy fundamentals, the company has given back more than 100% in the past year.
Stellar Track Record Fuels Optimism
Jain has bought Lincoln Pharma shares more than once in the past, and all of his calls succeeded in meeting their goals.
Because of this great track record, the market veteran told small investors to buy the stock at its present price range of Rs 670, with an expected rise of Rs 80 to 100 over the next 4 to 6 months.
For a short time, Lincoln hit a record high of Rs 705 before investors started to make profits. From a medium to long-term point of view, Jain thinks that the current values are a good time to get back in.
Why Lincoln Pharma Stands Out
Jain says that Lincoln Pharma gets highly on a number of quality factors that show that it is a good investment:
- Over 1700 Registered Products: With a wide range of therapeutic products in its portfolio, Lincoln is able to quickly increase output while enjoying steady growth.
- Exports Drive Growth: Exports bring in most of the money, and their volume growth is faster than that of local sales. The company’s main goal is still to grow its presence in Africa.
- Cheap Valuations: At a P/E ratio of 15 to 16, Lincoln stock is a good buy. At 50%, promoters still have a lot of shares, which shows that management has a lot at stake.
- Strong Financials: In the September 2023 quarter, Lincoln had a good net profit of Rs 80 crore. The operating profit ratio is a strong 20%. The business also has a good credit grade.
Outlook: Fundamentals Support Upside
Experts think that Lincoln Pharma will continue to grow in 2024 thanks to its wider range of products. As long as exports keep growing faster than domestic sales, the key to the future is to continue to grow abroad.
Lincoln stock is a good bet for small investors who are ready to hold on to their shares for 12 to 18 months because it has healthy cash flows, no debt, an efficient working capital cycle, and low prices.
According to Jain’s call, the price could go up even more, by 12 to 15 percent from where it is now. As investors feel better about the market as a whole, Lincoln Pharma should keep going up and aim for Rs 750.
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Check Out Lincoln Pharmaceuticals Financial History
Lincoln Pharmaceuticals Income Statement (Quarterly) (Rs. Cr)
| Quarterly | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 |
|---|---|---|---|---|---|
| Sales | 155 | 135 | 112 | 133 | 140 |
| Other Income | 8 | 7 | 3 | 6 | 5 |
| Total Income | 164 | 143 | 116 | 140 | 146 |
| Total Expenditure | 127 | 117 | 98 | 109 | 114 |
| EBIT | 37 | 25 | 18 | 30 | 32 |
| Interest | 0 | 0 | 1 | 0 | 0 |
| Tax | 9 | 6 | 4 | 8 | 8 |
| Net Profit | 27 | 19 | 12 | 21 | 23 |
Lincoln Pharmaceuticals Balance Sheet (Quarterly) (Rs. Cr)
| Equities & Liabilities | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 | Mar 2019 | Trend Mar 19 – Mar 23 |
|---|---|---|---|---|---|---|
| Share Capital | 20 | 20 | 20 | 20 | 20 | 024 |
| Reserves & Surplus | 482 | 412 | 344 | 284 | 242 | 0600 |
| Current Liabilities | 72 | 90 | 66 | 55 | 75 | 0100 |
| Other Liabilities | 12 | 10 | 7 | 7 | 8 | 016 |
| Total Liabilities | 587 | 534 | 438 | 367 | 346 | 0800 |
| Assets | ||||||
|---|---|---|---|---|---|---|
| Fixed Assets | 157 | 147 | 91 | 91 | 90 | 0200 |
| Current Assets | 367 | 352 | 275 | 215 | 194 | 0400 |
| Other Assets | 63 | 33 | 71 | 60 | 61 | 080 |
| Total Assets | 587 | 534 | 438 | 367 | 346 | 0800 |