MUMBAI: Sun Pharmaceuticals stock crashed 16% in early trade on Tuesday after India’s largest drugs manufacturer on Monday evening issued a revenue and profit warning. The stock fell to a low of Rs 799 in early trade and at noon was trading at Rs 819, down 13.4% on the day.

On Monday evening, Sun Pharma said that costs for integrating Ranbaxy Laboratories , one of the largest but troubled Indian pharma company that Sun Pharma bought last year, would be higher than expected earlier and also there are costs for resolving issues at its Halol manufacturing plant. The company also said that it was discontinuing some of its low-margin businesses. All these could impact its revenues for the current fiscal, it said, leading to flat topline.

The company management, however, said that the benefits from integrating Ranbaxy with itself is estimated at about $300 million. Although investors were skeptical about the short term implications of the warnings on the stock price, analysts are yet to significantly downgrade the stock. Jefferies, a foreign brokerage, maintained a target price of Rs 1,100 for the stock. Kotak Institutional Research, a domestic brokerage, however, has a sell rating which it is continuing with and expects there could be 8-10% hit to Sun Pharma’s profits this year.