May 16, 2019 / 5:49 AM / in 7 days

BUZZ-India's Lupin falls close to 7-week low on Q4 profit miss

** Shares of Lupin Ltd fall as much as 5.9% to 736.40 rupees, touches a level close to 7-week low after the pharma co posted qtrly results below estimates

** Mumbai-based firm posted profit of 2.90 bln rupees ($41.3 mln) for March-qtr vs estimate of 4.18 bln rupees

** Jefferies cuts PT to 650 rupees from 680 rupees, saying Lupin’s base business is facing challenges; R&D execution has been weak, raising concerns about medium-term growth

** Brokerage cuts EPS estimates of fiscal years 2020 and 2021 by 20% and 10%, respectively, factoring challenges in U.S. market, impact of recent costs and supply disruption from OAIs (Official Action Indicated); keeps ‘underperform’ rating

** “Turnaround in operations is still some time away”, depending on timely approvals, resolution of U.S. compliance issues - CLSA

** CLSA cuts EPS of 2020 and 2021 fiscal years by 6% and 14%, respectively; cuts PT to 700 rupees from 730 rupees, keeps “sell” rating

** Citi raises PT to 710 rupees from 700 rupees, saying “difficult to get conviction” over pace of Lupin’s recovery; maintains “sell” rating ($1 = 70.2300 Indian rupees) (Reporting by Krishna V Kurup)

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