Laurus Labs shares fall 15% in 4 trading sessions

By CNBCTV18.COM IST (Released)

mini

Laurus Labs shares fell 6.1% in intraday trading on Tuesday to bottom at Rs 450.30 each on BSE. Prior to that, the stock had fallen 0.5% on Thursday, 7.3% on Friday and 1.6% in Monday’s Diwali Muhurat trading session.

Shares of Laurus Labs Ltd extended the slide for the fourth straight trading session on Tuesday after the company reported a weak set of earnings for the second quarter ended September 2022 (Q2 FY23).

Laurus Labs shares fell 6.1% in intraday trading on Tuesday to bottom at Rs 450.30 each on BSE. Prior to that, the stock had fallen 0.5% on Thursday, 7.3% on Friday and 1.6% in Monday’s Diwali Muhurat trading session. Cumulatively, Laurus Labs stock is down nearly 15% when taking into account Tuesday’s low.

As of 11:35 a.m., the shares were trading at Rs 451.40 each, down 5.9% from their previous close, while the Sensex was down 175 points, or 0.29%, at 59,655.93 . Interestingly, Laurus Labs stock has fallen over 15.6% over the past year, compared to a 2.2% decline for the Sensex over the same period.

Laurus Labs said on Friday that profit after tax (PAT) for the September quarter was Rs 233 crore, up 15% from a year ago. The company’s revenue increased by 31% to Rs 1,576 crore in the quarter.

The point of concern was that the company said it would achieve just 90% of its revenue forecast for the current fiscal year. Laurus Labs previously guided to reach $1 billion in revenue by fiscal year 2023.

Although he said he would only reach 90% of his forecast of $1 billion for the current financial year, he counts this figure with the USD-INR rate at 72. From these levels, the currency has already depreciated by 15%.

After the earnings announcement, brokerage Motilal Oswal said it was bullish on Laurus Labs stock and recommended a “buy” with a target price of Rs 610.

Comments are closed.