Bleak financials hit Orchid Chemicals

DALAL STREET SPIKES

The scrip of mid-sized pharmaceutical company Orchid Chemicals ended lower on Thursday on disappointing September quarter results.

The stock was down nearly five per cent in intra-day deals before closing at Rs 220.45, down 4.17 per cent from its previous close.

The counter witnessed a volume of more than 2.02 lakh shares on the BSE. Analysts said the company's second quarter results was way below street expectation, resulting in selling pressure at the counter.

The company's net profit declined by 45.8 per cent to Rs 3.95 crore from Rs 7.30 crore on a flat turnover of Rs 163.77 crore compared with Rs 163.95 crore in the same quarter last year. The stock has been on a decline of late, fearing a disappointing quarterly results. From Rs 251.24 on October 9, 2004, the stock on Thursday closed at Rs 220.45, down 14.09 per cent.

Orchid Chemicals is into bulk drugs and formulations and is the largest producer and exporter of cephalosporin API in India. They are also among the top five players in this segment in the world.