November 1, 2018 / 5:47 AM / 8 months ago

BUZZ-India's Lupin falls on muted Q2 results

** Shares of Lupin Ltd, India’s second-largest drugmaker by revenue, fall as much as 2.6 pct to 862.2 rupees, in their biggest daily pct drop in over a week

** Q2 net profit plunged 41.5 pct to 2.66 bln rupees ($36.04 mln), missing average analysts’ estimate, as sales in the United States - a key market - dropped and overall manufacturing costs rose

** CLSA analysts write that despite a favourable currency, margin pressure continued as co incurred a high spend on promotional activities for the recent launch of its specialty drug, Solosec

** Margin pressure to be felt in coming qtrs too as as spend continues in the mid-term and with no big launch seen on the generic side - CLSA

** HSBC says challenges continue in the US and Japan; execution remains the key; retain PT of 790 rupees with rating ‘reduce’

** Only eight of 38 brokerages covering the stock rate it “buy” or higher, 11 “hold” and the rest “sell” or lower; their median PT is 800 rupees - Refinitiv data ($1 = 73.8050 Indian rupees)

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