Wockhardt hits fresh 52-week high; surges over 20% post Q3 results

The stock rallied 6% to Rs 1,440, extending its nearly 15% rally in past one-week on BSE.

Shares of Wockhardt has rallied 6% to Rs 1,440, extending its nearly 15% rally in past one-week on BSE, after the company reported 14% increase in consolidated net profit at Rs 347 crore for the third quarter ended December 31, 2014 (Q3).

The stock opened at Rs 1,373 and hit high of Rs 1,462, its highest level since May 2013, on BSE. The trading volumes on the counter nearly doubled with a combined 3.45 million shares changed hands till 1437 hours on BSE and NSE.The benchmark S&P BSE Sensex dipped 1.4% during the same period.

Analysts at Indsec Securities and Finance expect, the revenue of the company will see healthier growth in the future due to exports being started from Chikalthana facility to UK along with the sales from Morton Grove to US market from this quarter.

“Any change in stance for Chikalthana facility from the US FDA authorities would be a big trigger for the stock. The stock is trading at reasonable valuations and one could accumulate it from medium to long term perspective,” analysts said in report dated February 9, 2015.

Meanwhile, Citi upgraded the stock to buy from sell. The brokerage has also revised its target price to Rs 1,880 per share following firm December quarter results.