Shares of Gland Pharma opened with a fall of 9.5% on October 27 as investors sold shares after a disappointing second quarter of FY23.

The stock was quoted at Rs 1,915 on the National Stock Exchange at 10:30 am, down 13.9% after hitting a 52-week low of Rs 1,912.

The pharmaceutical company reported a 20% year-on-year drop in profit to Rs 241.2 crore in the quarter that ended FY23 on weak revenue and operating results.

Revenue for the quarter fell 3% year-on-year to Rs 1,044.4 crore, impacted by a slump in business in India and the rest of the world. Meanwhile, core markets (US, Europe, Canada and Australia) grew 3% yearly.

Citi placed a call option on the stock and cut its target price to Rs 1,920 from Rs 2,140 per share. “The company reported other weak numbers with EBITDA/PAT of 11%/14%, respectively. Margin declines were mainly due to mix changes and increased competition,” the global broker said.

Goldman Sachs’s buy rating on the stock lowered its target price to Rs 2,530 per share. “The growth in the US business was offset by declines in India and the rest of the world. We have lowered our EPS forecast for FY23-FY25 by 5-9%,” it noted.

Meanwhile, Jefferies downgraded the stock to hold with a target of Rs 2,241 per share from Rs 2,843. The brokerage has cut its FY23/24 EPS forecast by 11%/15% as supply chain challenges will continue to pose growth and margin headwinds.