India's Laurus Labs tumbles as Kotak cuts to 'sell' on margin risks

Laurus Labs

29/11/2022 05:54

** Shares of pharmaceutical firm Laurus Labs  LAUL.NS  fall
as much as 6.9% to 419 rupees, lowest since April 13, 2021
    ** Stock marks sharpest intraday pct drop since Oct 21
    ** Kotak Institutional Equities downgrades LAUL to "sell",
cuts fair value to 350 rupees from 460 rupees
    ** LAUL's troubles on pricing of HIV treating antiretroviral
drugs (ARV), and looming cessation of sales of Paxlovid (oral
antiviral drug for COVID-19 treatment) are being
underappreciated - brokerage
    ** Kotak adds LAUL saw severe pricing pressure, lower
volumes in ARV formulations portfolio for five qtrs,
significantly pressuring core margins
    ** Once Paxlovid contribution recedes in 2HFY23, impact of
lower ARV pricing should start reflecting in weaker overall
margins - Kotak
    ** Kotak says revised FY2024 EPS estimates for LAUL is 34%
lower than the street
    ** Nearly 5 mln shares traded, 3.1x times their 30-day
moving avg of 1.5 mln
    ** Stock down ~16 so far this year, up to last close, vs a
8.6% fall in the Nifty Pharma index  .NIPHARM 
 (Reporting by Akansha Victor in Bengaluru)
 ((Akansha.Victor@thomsonreuters.com; Mobile: +919654878265;))