Torrent Pharmaceuticals Limited (TRP) shares plunged over 15% to hit an intraday low of Rs 2,642.05, after the company reported  weak performance in the December 2021 quarter. The share closed at Rs 2,686.95, down by 15% on Thursday, January 27, 2022.

The pharma firm reported a 16% year-on-year decline in its consolidated net profit for the October-December quarter at Rs 249 crore on account of weak performance in the US market. It reported a net profit of Rs 297 crore in the October-December period of the financial year 2020-21. Its US business revenues registered a 20% YoY decline in revenue at Rs 235 crore.

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The drug maker’s total revenue from operations rose 6% to Rs 2,108 crore during the third quarter as against Rs 1,995 crore in the year-ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 585 crore, dropping 5%.

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The stock opened 7% lower at Rs 2,940 against the previous close of Rs 3,160.55. At 11:50 am, the shares were trading 15.6% lower at Rs 2,665.45. The market cap of the firm fell to Rs 45,105.47 crore. The stock touched an intraday high of Rs 2,940 and an intraday low of Rs 2,642.05.

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Global research and broking firm CLSA has downgraded the stock to and reduced the target to Rs 3,350 from Rs 3,850 per share. According to the firm, US and EU sales were below estimates but India sales growth of 15% remained solid.

CLSA added that the margin should recover in two quarters, due to price hikes in India and Brazil. 

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Goldman Sachs has cut the target price to Rs 3,555 from Rs 3,630 per share. The brokerage  believes US concerns offset solid India and Brazil performance. Topline momentum remained subdued in US business. “We lower FY22-24 EPS estimates to factor in slower ramp-up in the margin,” it said as reported by MoneyControl.

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The company’s board also approved an interim dividend of Rs 25 per share during its meeting on Tuesday.