Lupin shares fall to 3-month low on Q4 result

Lupin shares tumbled 3.42 per cent to Rs 1,632.80 on Thursday to a three-month low after disappointing Q4 results. 

For the quarter ended March 2015, the company registered consolidated net profit of Rs 547.01 crore, down 1.08 per cent, against Rs 553.01 crore in the corresponding quarter a year ago. As a result of this, shares of the company closed 3.35 per cent lower on BSE yesterday.

However, consolidated gross sales of the company jumped marginally 0.08 per cent year-on-year to 3,054.04 crore for the quarter under review.

Jefferies has downgraded the company's stocks to "hold" from "buy" after the result. The global investment banking firm said, Lupin shares are still trading at a 10 per cent  premium as against the sector valuations. Shares are trading at 25.5 times 1-year forward earnings against peer median of 23.4 times.

ICICI Securities in a note said, "Lupin's Q4 FY15 numbers stood below expectations on the revenue, operating profit as well as net profit fronts."

(with inputs from Reuters)