Brooks Labs down 40%; exports will drive growth

NEW DELHI: Shares of Brook Laboratories Ltd, which made its debut on the bourses today with a 10% premium, 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 its morning gain of over 30% in the trade today. The stock listed at Rs 110 per share vs its issue price of Rs 100.

Shares in the company closed 39.80% lower at Rs 60.20. The stock has hit a high of Rs 131.10, translating gains of over 30% in trade today and a low of Rs 57.75 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 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.