Lupin, Divis Labs Fall To 52-week Low; How Have They Fared Against Nifty Pharma?

  • Stock Market Analysis

Tuesday hasn’t been a good day for investors. Although, the Indian markets opened the session on a flat note and rose noticeably on the upside, the fall by the closing disappointed investors. The benchmark Nifty 50 index closed the session 0.55% or 89.55 points lower at 16,125.15.

By the closing, 8 sectoral indices ended the day in the red zone, with the Nifty Pharma index falling 1.53% or 179.6 points to 12,691.6. Some of the drag was created by Divi's Laboratories Ltd. (NS: DIVI ) shares as it became the top index loser, falling 6.06% to the last closing price of INR 3,661.7, while Lupin (NS: LUPN ) shares slid 2.85% to INR 600.85 by closing. Both these shares marked a new 52-week low in today’s session. 

Lupin Limited

Looking at the chart of Lupin, it is clear that all the hype about its shares during the Covid-19 pandemic seems to have faded now. The stock has fallen from its 52-week high as fast as it had risen from its 52-week low, marked during the pandemic. Investors who unfortunately bought near the 52-week high of INR 1250 odd levels have been witnessing a massive drop of around 50% in their holdings.

Lupin

Image Description: One-year comparative analysis of Lupin (Blue) & Nifty Pharma (Purple)

Image Source: Investing.com

The recent Q4 FY22 numbers only accelerated the fall in the last few sessions as the company reported a noticeable plunge in revenue to INR 3,898.87 crore, compared to INR 4,195.01 in the previous quarter. Currently, the stock is in a free-fall mode and reaching rapidly toward the pandemic lows which seems to be the nearest support level. The stock has significantly underperformed its benchmark index in the last year, delivering a negative return of 51.21%, while the Nifty Pharma was down only 10% in the same time period.

Divis Laboratories Limited

Divis Labs has also disappointed investors since mid-October last year when the stock started to correct from its 52-week high. Divis Labs shares have remained among investors' favourites when it comes to the pharma pack. The stock had been in a bull run for the last few years, leading to a surge from INR 600 odd levels in May 2017 to an all-time high of INR 5,425.1 in almost 4.5 years.

Divis Labs

Image Description: One-year comparative analysis of Divis Labs (Blue) & Nifty Pharma (Purple)

Image Source: Investing.com

However, the bull run seems to have ended now as the stock has plunged more than 30% from its all-time high level and today touched a new 52-week low of INR 3,650. The nearest support level for the stock is around INR 3,360, which is a decent 8% lower than the current price. In the last year, the stock has delivered a negative return of 14.08%, a slight underperformance compared to the Nifty Pharma’s return of a negative 10%.

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  • Narasimham Sv @Narasimham Sv
    give me list of worst nifty Pharma stocks
    Like 1
    • Kausik Mondal @Kausik Mondal
      Only Sun Pharma for life long term,,😀
      Like 0
    • Kausik Mondal @Kausik Mondal
      I mean to say the best one for long term holdings.
      Like 1
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