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Shares of Divi's Laboratories Ltd. fell to another 52-week low on Monday, continuing its disappointing run in 2022.

The stock has now declined 30 percent this year. Shares made a recovery from their lowest point of the day to end flat.

Shares of India's second-largest pharma company by market value have now corrected nearly 40 percent from their 52-week high of Rs 5,077.

Divi's Laboratories has been under pressure since it reported its quarterly results last week. Net profit fell nearly 20 percent while revenue declined 7 percent from the year-ago period.

Brokerage firm Jefferies has maintained an underperform rating on the stock with a price target of Rs 3017. The firm believes that Divi's growth levers will only kick in from financial year 2024 while its near-term outlook remains uncertain.

Motilal Oswal downgraded the stock to neutral from the earlier rating of buy. It also cut its earnings estimate by 18 percent for the current and next financial year due to a deceleration in the custom synthesis business, moderation in the API business, and a delayed scale-up in the neutraceutical business despite expanding capacity of the same business.

Shares of Divi's Laboratories ended unchanged at Rs 3,273.00.