May 21, 2018 / 5:15 AM / a month ago

BUZZ-India's Strides Shasun extends losses on disappointing Q4

** Shares in pharmaceutical company Strides Shasun Ltd slip for a second session; fall as much as 8.7 pct to 353.40 rupees, lowest since April 2014

** Company on Friday here reported a five-fold rise in March-qtr consolidated net profit on a 5.84 bln rupees ($85.8 mln) gain from sale of certain businesses and assets, but posted a 44 mln rupees loss after tax from continuing ops

** Strides’ Q4 performance was a “huge dampener” - Macquarie analysts

** Macquarie cuts FY19/20 EPS estimates sharply by 52/50 pct to reflect structural issues in U.S. and institutional businesses; cuts rating to “neutral” and TP to 398 rupees from 860 rupees

** Considering weak FY18 performance on revenue and margins front, we reduce our revenue and earnings estimates by 17-18 pct and 50-60 pct respectively, ICICI Securities analysts write

** Jefferies expects revenues and margins to improve, however recovery will likely be weighed down by challenges in U.S. and Africa in near term; keeps “buy” rating

** Stock down 51.4 pct this year, as of Friday’s close ($1 = 68.0650 Indian rupees)

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