Lupin on a new low

Lupin has been hitting new lows consistently since 23rd May. Today too, the new low was at Rs.1111.25.

This is on the back of its very disappointing performance for Q4FY17 where due to falling sales in USA and one-time expense for patent litigation over generic oral contraceptive drug in Australia, pushed down the company’s net profit to Rs.380 crore, down 49% (YoY).

Following this, foreign brokerage house, CLSA went on to downgrade the stock. In its report it said Lupin expects a challenging FY18 due to competitive/regulatory pressures in the US and Japan. It downgraded the stock to “outperform” from “buy” and lowered the price target from Rs.1760 to Rs.1350. It slashed FY18/19 EPS by 18% each.