CLSA maintained its sell rating on Lupin post March quarter results but slashed its target price to Rs 700 from Rs 730 earlier.
Shares of Lupin fell for the second consecutive day in a row on Thursday after the pharma major posted a consolidated profit after tax of Rs 296 crore, which fell short of analyst estimates. The results compared to a Rs 777 crore loss seen in the year-ago period.
In a separate report, the drugmaker said it has received three observations from the US health regulator for its Aurangabad-based manufacturing facility.
The US Food and Drug Administration (USFDA) carried out the inspection at the plant from May 6 to May 15, Lupin said.
CLSA maintained its sell rating on Lupin after the announcement of March quarter results, slashing its target price further to Rs 700 from Rs 730 earlier.
The note said turnaround is some time away for Lupin and contingent on timely US approvals. "The Q4 results were below estimates due to lower-than-expected USA revenue."
US sales were up 23 percent on a QoQ basis, led by Ranexa launch. USFDA compliance issues could be resolved more towards H2FY20.
The turnaround in operations is still some time away. CLSA slashed its FY20-21 EPS estimates by 6-14 percent on higher tax rate guidance.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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