Shares of Lupin surged over 7 percent on Friday and were among the best performers on the Nifty 200 index. At 12:18 pm, the stock was up 6.8 percent at Rs 942 on the BSE.

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The company reported a consolidated net loss of Rs 2,098 crore for Q2FY22 as compared to a net profit of Rs 211 crore in the year-ago period.

During the quarter, the company booked a provision of Rs 1,879.6 crore, including Rs 38.7 crore towards litigation and settlement related expenses, under Glumetza class actions towards business compensation expense and impairment expense of Rs 707.7 crore for Solosec, Lupin said.

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The operating margin for the reporting period was at 15.7 percent against 16 percent in the corresponding quarter last year.

The drug-maker had on Thursday said that the company expects around 13 percent year-on-year growth in the third and fourth quarters.

CLSA has upgraded its rating on shares of Lupin to 'outperform' from 'sell' as it sees a favourable risk-reward ratio. But believes that execution is the key to re-rating and has cut its target price to Rs 950 from Rs 970 and trimmed EPS estimates by 9-11 percent for FY22-24 to discount lower margin forecasts.

Morgan Stanley has an 'overweight' stance on the stock whereas Credit Suisse has upgraded its rating on the drugmaker's stock to 'neutral'.

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Near-term headwinds in the form of commodity inflation and heightened competitive intensity could impact growth and exert margin pressures for Lupin, pointed out Sharekhan.

The brokerage though quickly added that Lupin's long-term growth levers are intact despite the near-term hiccups while maintaining its 'buy' call on the stock.

Meanwhile, Nirmal Bang Equities has downgraded the stock rating to 'accumulate' from 'buy'.

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