Rakesh JhunJhunwala News : LUPIN, one of the favorite stocks of Big Bull Rakesh Jhunjhunwala, fell nearly seven per cent on Thursday. The stock had fallen six per cent on Wednesday as well. After a fall of 13 per cent in the last two days, there is a panic among the investors putting money in it. They do not understand whether they should get out of it or stay. In fact, due to the decline in US market sales in the June quarter, its earnings were not as per the market estimates. After the fall in the gross margin of LUPIN in this market, its shares fell six percent on Wednesday. Then it also declined on Thursday. On Thursday, its shares fell to Rs 978.
Shares jolted by poor performance in US market
The net profit of LUPIN in the first quarter of the current financial year has been Rs 542 crore. At the same time, in the first quarter of the last financial year (2020-210), the net profit was only Rs 106.9 crore. The revenue of this giant pharma company has also increased. The company’s revenue in the first quarter of the last financial year (2020-21) was Rs 3468.63 crore, but in the first quarter of the current financial year (2021-22), the revenue increased to Rs 4,237 crore. But its revenue in the US market fell 11.8 percent to $172 million. Due to lower sales in the US market, its gross margin has also declined. This has had a profound effect on the shares of the company. This is the reason why big investors have started coming out of it. Its decline of 13 percent in two days is proof of this. Rakesh Jhunjhunwala holds 1.60 percent stake in this company. In the June quarter, he had 72,45,605 shares in it. In such a situation, is there an opportunity for common investors to enter LUPIN shares?
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What is the opinion of leading brokerage companies
ICICI Securities says that the company’s sales in the US market will remain under pressure. There are also problems with the approval of its new drugs. There is uncertainty about the company’s terms term outlook. The company’s EBIDTA margin may remain low by 20 percent. ICICI Securities has downgraded its rating and has reduced its target price to Rs 962. Another brokerage firm MotiLal Oswal has also downgraded the rating of LUPIN shares to Neutral with a target price of Rs 1040. Prabhudas Lilladher has downgraded it and kept its target price at 955. Earlier it had kept its target price at Rs 1314 and advised its shares to accumulate.
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