Lupin fell 2.95% to Rs 1,560.25 at 10:26 IST on BSE on reports that a foreign brokerage downgraded shares of the Indian drug maker to sell.
Meanwhile, the BSE Sensex was down 165.98 points, or 0.59%, to 27,919.18.
On BSE, so far 2.28 lakh shares were traded in the counter, compared with average daily volume of 1.34 lakh shares in the past one quarter. The stock hit a high of Rs 1,608 and a low of Rs 1,552.50 so far during the day. The stock hit a record high of Rs 2,127 on 6 October 2015. The stock hit a 52-week low of Rs 1,294.05 on 29 March 2016. The stock had underperformed the market over the past 30 days till 9 August 2016, falling 3.68% compared with 1.66% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.90% as against Sensex's 9.72% rise.
The large-cap company has equity capital of Rs 90.20 crore. Face value per share is Rs 2.
The brokerage reportedly said that the competition in top US products will weigh on the company's growth. Lupin's key complex products lack visibility of launch. Lupin is likely to post single digit earnings per share growth in the year ending March 2018, it added.
Meanwhile, another foreign brokerage reportedly maintained underperform rating on Lupin. It reportedly said that risk-reward ratio is unfavourable for the stock. Q1 has been a peak profit quarter for Lupin. The brokerage cut its estimates on Lupin's earnings per share for the year ending March 2017 (FY 2017).
According to media reports, shares of Lupin fell as its two main businesses US and India did not do well in Q1 June 2016. The US business numbers were disappointing when compared to Q4 March 2016, while the Indian business numbers were disappointing when compared to Q1 June 2015.
Reports added that the possibility of a punitive US Food and Drug Administration (USFDA) action on Lupin's Goa plant also continues to be an overhang. Goa plant contributes about 20% of the US revenues.
Shares of Lupin fell 5.03% to Rs 1,607.60 yesterday, 9 August 2016, after the company's consolidated net profit rose 55.1% to Rs 882 crore on 40% growth in net sales to Rs 4313.60 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours yesterday, 9 August 2016. The stock has fallen 7.83% in two sessions from its close of Rs 1,692.75 on Monday, 8 August 2016.
Lupin's managing director Nilesh Gupta said that the company has delivered its best results to date in tune with its growth momentum. This was a record quarter, driven by robust growth across all key markets for the company viz. the United States, India and Japan, he said. The management remains committed to maintaining the company's growth trajectory given new product launches and approvals driven by strategic investments in technology and research, Gupta said.
Lupin is a pharmaceutical company producing and developing a wide range of branded & generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally. The company is a significant player in the cardiovascular, diabetology, asthma, pediatric, CNS, GI, anti-infective and NSAID space and holds global leadership positions in the anti-TB segment.
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