Shares of Aarti Drugs Ltd, a leading manufacturer of active pharma ingredients, pharma intermediates and speciality chemicals, declined for the third day in a row to a 52-week low.
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The last five sessions have seen the stock decline close to 5 percent and the decline widens to 13 percent over the last month.
The company took an inventory loss in the API business during the quarter due to a correction in raw material prices.
Barring the API business, the company's formulations, specialty chemicals and intermediates business declined from the same period last year.
After the earnings missed estimates, brokerage firm Axis Securities reduced its price target on the stock to Rs 490 from Rs 525 earlier, while retaining its ‘buy’ rating.
“API (active pharmaceutical ingredients) sector is experiencing low export demand and high competition in the domestic market due to Chinese products, which led to an overall fall in realisations. We believe demand could revive in 1HFY24E (first half of fiscal year 2023-24) with the improvement in global economy,” Axis Securities said in its research report dated January 31.
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