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.

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