Shares of Sun Pharmaceutical Industries fell up to 3 per cent adding to Wednesday’s 1.8 per cent decline.
The stock is the biggest loser on the NSE index.
The company's key unit Taro Pharmaceutical Industries’ quarterly sales missed guidance by 6 per cent, raising worries about Sun's quarterly results due on Saturday, according to analysts.
Taro reported a 15 per cent slump in quarterly sales on Wednesday due to higher competition and $19 million price protection charge, said analysts.
"We see structural growth challenges for (Sun Pharma) in FY17 as the base business pressures on the US business get amplified," Kotak analysts wrote in a note, reiterating their "sell" recommendation on the stock.
Barclays analysts said in a note on Thursday that Sun Pharma's generic drugs pipeline and cash reserves were "medium-term positives," but retained their "equal weight" rating on the stock, citing near-term headwinds in its base business.
Analysts on average expect a 17 per cent dip in Sun Pharma's Q2 earnings.