Shares in pharmaceutical company Strides Shasun Ltd slipped for a second session. They fell as much as 8.7 per cent to Rs 353.40, the lowest since April 2014.
The company on Friday reported a five-fold rise in March-quarter consolidated net profit on a Rs 584 crore ($85.8 mln) gain from sale of certain businesses and assets, but posted a Rs 4.4 crore loss after tax from continuing operations.
Strides' Q4 performance was a “huge dampener”, said Macquarie analysts. Macquarie has cut FY19/20 EPS estimates sharply by 52/50 per cent to reflect structural issues in US and institutional businesses; cuts rating to “neutral” and target price to Rs 398 from Rs 860.
Considering weak FY18 performance on the revenue and margins front, we reduced our revenue and earnings estimates by 17-18 per cent and 50-60 per cent respectively, ICICI Securities analysts wrote.
Jefferies expects revenues and margins to improve, however recovery will likely be weighed down by challenges in U.S. and Africa in near term. It has retained its “buy” rating.
The stock is down 51.4 per cent this year, as of Friday's close.