Religare Capital has maintained 'Hold' on Lupin (LPC) after the company declared its second quarter results. The stock broker fixed price target at Rs 1,720.

Commenting on the results, Religare said, ''LPC reported its weakest quarterly margins over past 12 quarters, missing the already moderate Q2 earnings estimates by over 25%. Management has guided for a moderate Q3 and a delay in key launches, viz. gWelchol, gRenagel, gRenvela, to H2FY17E from H2FY16E earlier.''

Commenting on the investment rationale, the stock broker said, ''LPC has guided for a delayed FY17E-end launch of generics Welchol, Renagel, and Renvela as against expectations of a H2FY16E launch. LPC also expects the full impact of recent price hikes in gFortamet only in Q4 due to the fixed-price nature of government contracts. It thus expects a weak Q3 ahead.

We cut our FY16E/17E/18E EPS by 9% each to reflect a weak H1 and delays in key US launches. Our cut would have been sharper but for the recent 2x price hike in gFortamet (FY17E sales of USD 150 million assuming 50% of hike sustains) and a higher market size for gGlumetza post the 8x price hike by Valeant. Hold with a Sep'16 TP of Rs 1,720 from Rs 1,840 earlier. ''

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