Hikal gallops as USFDA issues zero observations after inspection of Jigani plant

Hikal jumped 11.52% to Rs 243.05 on BSE after the company said that US Food and Drug Administration has issued zero observations after completion of inspection at its manufacturing facility located at Jigani, Bangalore.

The announcement was made during market hours today, 10 January 2017.

Meanwhile, the S&P BSE Sensex was up 173.01 points, or 0.65%, to 26,899.56

On the BSE, 2.01 lakh shares were traded in the counter so far, compared with an average volume of 13,030 shares in the past one quarter. The stock had hit a high of Rs 256.10 and a low of Rs 217.60 so far during the day.

The stock hit a record high of Rs 241.30 on 3 November 2016. The stock hit a 52-week low of Rs 116.60 on 31 March 2016. The stock had underperformed the market over the past 30 days till 9 January 2017, falling 3.67% compared with Sensex's 0.08% fall. The scrip had, however, outperformed the market in past one quarter, gaining 1.85% as against Sensex's 4.83% decline.

The small-cap company has an equity capital of Rs 16.44 crore. Face value per share is Rs 2.

Hikal said that the company's API and intermediates manufacturing facility located at Jigani, Bangalore was recently inspected by the US Food and Drug Administration (US FDA) in compliance with their requirements. At the end of the successful inspection, the company have been informed by the investigator that zero 483 observations were issued. This was a routine inspection by the US FDA.

Hikal's net profit jumped 216.2% to Rs 15.24 crore on 13.9% rise in net sales to Rs 232.31 crore in Q2 September 2016 over Q2 September 2015.

Hikal is engaged in research and development (R&D), manufacturing and marketing of fine chemicals for the pharmaceutical and agrochemical industries.

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