India's Laurus Labs sinks to 2-year low on growth uncertainty after Q3 results

Laurus Labs

31/01/2023 06:59

** Shares of Laurus Labs  LAUL.NS  fall as much as 5.19% to
324.05 rupees, their lowest since Dec 22, 2020
    ** Co reported a rise in third-quarter net profit on Monday,
but slashed its margin outlook for FY23 to 28% from 30%
 urn:newsml:reuters.com:*:nL4N34F1IT
    ** Global brokerage firm Jefferies maintains "hold" on the
stock and reduced target price from 395% to 325 rupees, citing
weak commentary on sales forecast and uncertain growth outlook
    ** The contract development and manufacturing organisation
(CDMO) business outlook remains unclear and margins are likely
to come under pressure, adds Jefferies
    ** Reiterate that the co's troubles on anti-retrovirals'
pricing and looming cessation of COVID-19 drug Paxlovid sales
are being underappreciated, says Kotak Institutional Equities,
which expects margins to stay under pressure over next few
quarters
    ** Over 3.71 mln shares change hands, 2.4x the 30-day avg of
1.56 mln shares
    ** Of the 11 analysts tracking the company, six maintain
"buy", two suggest "sell" and three recommend "hold"; median TP
is 440 rupees
     ($1 = 81.6970 Indian rupees)
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))