Shares of Sun Pharma slumped to over 4-year low on Q1 loss. The shares dropped as much as 3.8 per cent to Rs 432.7, their lowest since April 2013.
The company posted a surprise loss of Rs 425 crore ($66.27 million) in Q1, having incurred costs of Rs 951 crore related to settlements with some plaintiffs in a US antitrust case over sleep disorder drug Modafinil.
“The reason why we are suffering is because of our inability to execute,” founder and Managing Director Dilip Shanghvi said during a post-earnings conference call with analysts on Friday.
Sun Pharma's US sales slumped 42 per cent, while India sales dipped five per cent.
Analysts at CLSA expect the company's US sales to remain under pressure. “Margin guidance indicates base business in US is now loss-making,” Jefferies analysts wrote in a note, cutting the target price to Rs 410 from Rs 535.
Out of 37 analysts covering the stock, 18 have a “buy” or higher rating, 12 “hold” while the rest have rated it “sell” or lower, according to Thomson Reuters Eikon data.