Lupin's underperformance may continue on US-driven regulatory challenges

US sales trajectory, margins key triggers over the next couple of quarters

The Lupin stock has slipped over six per cent since mid-September highs with the observations for its Goa plan adding to the downtrend. While fresh worries over regulatory compliance is a negative, launches from approved sites, the recovery in US sales and operating profit margins in the coming quarters and strong India business keeps brokerages confident about the company’s prospects.

In the near term, however, the stock will continue to be under pressure given its regulatory track record and observations across multiple sites catering to the US market. After the Somerset facility in the US which received a Warning Letter