Alembic jumps after posting strong Q3 results

Alembic jumped 5.41% to Rs 70.10 at 10:32 IST on BSE after net profit jumped 717.6% to Rs 5.56 crore on 11% rise in net sales to Rs 29.93 crore in Q3 December 2017 over Q3 December 2016.

The result was announced after market hours yesterday, 23 January 2018.

Meanwhile, the S&P BSE Sensex was almost unchanged at 36,139.42. The S&P BSE Small-Cap index was down 113.65 points, or 0.58% to 19,537.51, underperforming the Sensex.

High volumes were witnessed on the counter. On the BSE, 12.39 lakh shares were traded in the counter so far, compared with average daily volumes of 5.42 lakh shares in the past one quarter. The stock had hit a high of Rs 72 in intraday trade, which is also a record high. The stock had hit a low of Rs 69.30 so far during the day. The stock had hit a 52-week low of Rs 33.85 on 11 August 2017.

Separately, Alembic said that its board of directors approved the proposal for buy-back of 1.02 crore fully paid up equity shares of the company, representing up to 3.84% of the total paid-up equity share capital of the company at a price not exceeding Rs 80 per share payable in cash for a total consideration not exceeding Rs 82 crore, on a proportionate basis through the tender offer route using stock exchange mechanism. The announcement was made market hours yesterday, 23 January 2018.

The promoters and the members of the promoter group have indicated their intention to participate in the buyback offer.

The buyback price of Rs 80 per share is at a premium of 14.12% over the ruling price.

Alembic is engaged in manufacturing and marketing of fermentation and chemistry based active pharmaceuticals ingredients (API). The company is also engaged in construction of residential & commercial real estate projects and project management and marketing consultancy. It is also engaged in power generation through co-generation plants of total 11 megawatts and 4 windmills of total 5 megawatts.

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