Business Standard

Uncertainty on revenue growth, margin outlook hits Gland Pharma stock

The injectable manufacturing company expects the margin pressure to persist due to cost pressures and negative operating leverage.

Gland Pharma
Premium

Operating profit margins also took a knock falling by 310 basis points on a sequential basis and 643 basis points y-o-y to 28.4 per cent.

Ram Prasad Sahu
The stock of Gland Pharma dipped 14.6 per cent in trade on Thursday, reacting to downgrades by brokerages and downgrades in earnings estimates after a weak July-September quarter (second quarter, or Q2) performance and absence of clarity on near-term growth.

As the biggest loser in the BSE 200 Index on Thursday, the stock shed about a quarter of its value from its early September highs.

The immediate trigger for the bearish view of investors is the all-time low margins and worries on growth. Gross profit and operating profit margins slipped to their all-time lows at 50 per cent and 28.4

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 27 2022 | 8:25 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com