Wockhardt rose 3.75% to Rs 366.15 after the media reported that drug major Cipla and Asian buyout fund PAG are vying with each other to acquire a big chunk of Wockhardt's domestic formulations business.
According to reports, Cipla and Asian buyout fund PAG are competing acquire a big chunk of Wockhardt's domestic formulations business for Rs 2,100-2,800 crore ($300-400 million) as the indebted pharmaceutical company looks to deleverage its balance sheet. Both submitted binding offers recently and Wockhardt is expected to finalise one bidder and begin final negotiations to conclude the transaction, reports added.
The stock surged 31.54% in four consecutive trading sessions to its current market price of Rs 366.15, from its recent closing low of Rs 278.35 on Wednesday, 22 January 2020.
Shares of Wockhardt jumped 18.01% to close at Rs 352.90 on Monday, 27 January 2020, after consolidated net profit stood at Rs 19.21 crore in Q3 December 2019 as against a net loss Rs 76.86 crore in Q3 December 2018. Net sales fell 16.89% to Rs 869.15 crore in Q3 December 2019 as compared Rs 1,045.86 crore in Q3 December 2018.
Profit before tax (PBT) stood at Rs 16.42 crore in Q3 December 2019, compared with pre-tax loss of Rs 120.59 crore in Q3 December 2018. The current tax expense surged 322.80% to Rs 14.46 crore in Q3 December 2019 over Rs 3.42 crore in Q3 December 2018. The Q3 earnings were announced during market hours on Monday, 27 January 2020.
During the nine-months ended 31 December 2019, the company repaid Rs 768 crore (previous year Rs 750 crore) towards various long term debt obligations as per schedule. Debt repayment during the quarter was Rs 359 crore (previous year Rs 347 crore). Gross Debt-Equity ratio as on 31 December 2019 stood at 0.95.
More From This Section
The scrip soared 47.87% to its current market price of Rs 366.15 in the past one month. It was seen trading between Rs 354 to Rs 374.55 during today's intraday trade.
On the technical front, the stock's RSI (relative strength index) stood at 86.879. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
Wockhardt is a global pharmaceutical and biotechnology organization, providing affordable, high-quality medicines. The company's filed 5 patents during Q3 December 2019 taking the cumulative filings to 3,162. The company was granted 9 patents during the quarter and now holds 717 patents.
Powered by Capital Market - Live News