The country’s second largest pharma company by market capitalisation, Divi’s Laboratories was the biggest loser among Nifty stocks shedding 6 per cent in trade on Tuesday. While its March quarter performance was robust, brokerages cut their earnings estimates sharply on concerns related to growth trajectory and valuations.
Tushar Manudhane and Gaurang Sakare of Motilal Oswal Research have reduced their earnings per share estimates over the next two years by 11-14 per cent. They cite reduced sales of Covid-related products considering the low number of cases globally, gradual uptick in growth in the generics segment and delay in implementation of Kakinada