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Shilpa Medicare slips after receiving USFDA observations

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Capital Market
Last Updated : Dec 06 2017 | 10:50 AM IST

Shilpa Medicare dropped 3.76% to Rs 611.30 at 9:53 IST on BSE after the company said that it has received ten 483 observations from the US drug regulator in relation to SEZ formulation facilities located at Telangana.

The announcement was made after market hours yesterday, 5 December 2017.

Meanwhile, the S&P BSE Sensex was down 70.41 points, or 0.21% to 32,732.03. The S&P BSE Mid-Cap index was down 15.91 points, or 0.09% to 16,796.16, underperforming the Sensex.

More than usual volumes were witnessed on the counter. On the BSE, 8,491 shares were traded in the counter so far, compared with average daily volumes of 4,299 shares in the past one quarter. The stock had hit a high of Rs 615.05 and a low of Rs 599.25 so far during the day.

The stock had hit a record high of Rs 786.75 on 21 December 2016. The stock hit a 52-week low of Rs 537.10 on 11 August 2017.

The stock had underperformed the market over the past one month till 5 December 2017, falling 4.33% compared with 2.62% drop in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 4.28% as against Sensex's 3.12% rise. The scrip had, however, underperformed the market in past year, dropping 3.16% as against Sensex's 24.49% rise.

The mid-cap company has equity capital of Rs 8.01 crore. Face value per share is Re 1.

Shilpa Medicare said that it has received 483 observations from the United States Food & Drug Administration (USFDA) in relation to SEZ formulation facilities situated at Jadcherla, Telangana near Hyderabad.

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Total 10 observations were cited during the close up meeting. Seven observations are related to improvement in procedures and practices and three observations are related to setting of analytical specifications, test procedures and method validation, company added.

Shilpa Medicare's consolidated net profit fell 10.7% to Rs 34.15 crore on 2.7% decline in net sales to Rs 203.99 crore in Q2 September 2017 over Q2 September 2016.

Shilpa Medicare is engaged in the business of bulk drugs manufacturing.

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First Published: Dec 06 2017 | 10:01 AM IST

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