Shares of Lupin Ltd, India's second-largest drugmaker by revenue, fell as much as 2.6 per cent to Rs 862.2, in their biggest daily percentage drop in over a week.

The company’s Q2 net profit plunged 41.5 per cent to Rs 266 crore ($36.04 million), missing average analysts' estimate, as sales in the United States - a key market - dropped and the overall manufacturing costs rose.

According to CLSA analysts, despite a favourable currency, margin pressure continued as the company incurred a high spend on promotional activities for the recent launch of its speciality drug, Solosec. “Margin pressure will be felt in coming quarters too as spend continues in the mid-term and with no big launch seen on the generic side,’’ it says.

HSBC says challenges continue in the US and Japan, and execution remains the key. It has retained a price target of Rs 790 with rating 'reduce'. Only eight of 38 brokerages covering the stock rate it ”buy” or higher, 11 “hold” and the rest “sell” or lower; their median price target is Rs 800, according to Refinitiv data.

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