Brooks Labs down 20%; exports will drive growth

NEW DELHI: Shares of Brook Laboratories Ltd slipped below their issue price as investors booked profits in a weak market.

Brooks Laboratories Ltd, a pharmaceutical contract research and manufacturing services company, pared most of its morning gain of over 30% in trade today. The stock listed at Rs 110 per share vs its issue price of Rs 100.

At 12:40 p.m., shares in the company were trading 18% lower at Rs 81.20. The stock has hit a high of Rs 131.10, translating gains of over 30% in trade today and a low of Rs 80.25 on the BSE.

“The company expects its top-line to grow by 35-40% in FY12 on the back of higher exports,” said Atul Ramchal, CMD, Brooks Labs.

“The management of the company is positive on clocking profit after tax (PAT) of Rs 20 cr in FY12,” added Atul.

The company caters to antibiotic, antituberculosis therapeutic segments.

The company intends to use issue proceeds for setting up a new manufacturing unit at JB SEZ Pvt Ltd, Panoli, Gujarat for manufacturing various pharmaceuticals formulations.