Alembic Pharma slips 5%; board approves Rs 1,150 cr as impairment charges

This one time impairment impact notwithstanding, we believe this move bodes well for future return ratios and profitability. We expect more impairments in due course, ICICI Securities said in a note.

Shares of Alembic Pharmaceuticals hit a 52-week low of Rs 476.30, as they slipped 5 per cent on the BSE in Friday’s intra-day trade after the company said its board approved impairment charges of Rs 1,150 crore for three Gujarat plants. The stock of drug maker slipped below its previous 52-week low of Rs 490.35, touched on February 15, 2023.

Alembic Pharma has done an impairment review of Capital Work in Progress (CWIP) assets of 3 new facilities in Gujarat namely Facility 2 (for oncology injectables and oral), Facility 3 (ophthalmic and general injectables) and Facility 4 (for oral