Shares of Jubilant Pharmova Ltd. fell after the pharma company received observations from the U.S. drug regulator.
The U.S. Food and Drug Administration has concluded audit of the company's solid dosage formulations facility at Roorkee, and issued six observations, it said in an exchange filing after trading closed on Tuesday.
Jubilant Pharmova said it would submit an action plan on the observation and engage with the U.S. drug regulator for the next steps.
This aggravated the decline in shares seen after the company missed analysts' estimates in the first quarter.
The stock fell 4.4% intraday on Wednesday, before closing with 3.59% losses. It lost over 6% since it announced Q1 results during market hours on Tuesday.
Net income down 71% at Rs 47.04 crore (Estimate: Rs 70.75 crore)
Revenue down 11% at Rs 1,451.72 crore (Estimate: Rs 1,471 crore)
Ebitda down 46% at Rs 192.40 crore (Estimate: Rs 234 crore)
Ebitda margin at 13.25% against 22.90%
The stock's trading volume was more than thrice the 30-day average, when markets closed. Of the seven analysts tracking the company, three each suggest a 'buy' and a 'hold', while one recommends a 'sell', according to Bloomberg data. The average of the 12-month consensus price target implies a 31.1% upside.
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