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Lupin shares hit one-month low as USFDA concerns weigh.
The stock fell as much as 9.1 per cent to its lowest since April 11.
Q4 profit beats estimates, but worries about future persist as it has yet to resolve the concerns raised by USFDA observations in March.
USFDA has raised concerns over inadequate manufacturing standards at the company’s Goa factory, on which Lupin depends for about 40 per cent of its US sales.
Deutsche Bank says issues with Goa factory could impact product approvals from this plant, as it cuts its EPS forecast for FY17/18 by 13.5 per cent/9.9 per cent to factor in increased R&D spend.
The brokerage has reduced the price target to Rs 1,666 from Rs 1,850, and downgraded the rating to “Hold” from “Buy".
Brokerage CLSA expects Lupin shares to be range-bound until FDA concerns are resolved.
SpiceJet nosedives
SpiceJet’s scrip today tumbled over 10 per cent even after the company reported a more than three-fold rise in net profit for the March quarter.
The company’s results came in post market hours yesterday.
The stock ended down by 10.37 per cent at Rs 71.30 on the BSE. It touched a high of Rs 78.40 and low of Rs 70.80.
SpiceJet, whose net profit grew more than three times to Rs 73.2 crore in the March quarter, plans to induct over 100 narrow-body planes in the next few months as the budget carrier seeks to tap growing domestic demand.
Aided by higher revenues and lower fuel costs, SpiceJet remained profitable for the fifth straight quarter.
It had registered a net profit of Rs 22.52 crore in the year-ago period.
In the latest March quarter, the airline took a “one-time expense of Rs 173 crore towards stabilising and improving the reliability of its fleet“.
Total income from operations climbed to Rs 1,474.9 crore from Rs 790.9 crore.
Pidilite jumps 4%
Shares of Pidilite Industries jumped nearly 6 per cent today as the company reported a 49 per cent increase in standalone net profit at Rs 115.1 crore for the March quarter.
The shares ended higher by 5.97 per cent at Rs 653.35 on the BSE. On the NSE, the stock gained 6.24 per cent to Rs 655.
The company has posted a net profit of Rs 77.2 crore in the same period last year, Pidilite Industries had said in a BSE filing yesterday.
Total income from operations also increased 12.3 per cent to Rs 1,086.9 crore during the January-March quarter from Rs 968.1 crore a year ago.
For the full fiscal, Pidilite Industries standalone net profit rose 40.1 per cent to Rs 703 crore from Rs 501.9 crore in the previous fiscal.
Its total income from operations also increased 7.64 per cent to Rs 4,734.5 crore in 2015-16 from Rs 4,398.1 crore in 2014-15.
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