Merck jumps on German parent's global sale plans

Merck rose 3.77% to Rs 1,252.10 at 9:59 IST on BSE after the company said that its holding company is considering full or partial sale of its consumer health business.

The announcement was made after market hours yesterday, 5 September 2017.

Meanwhile, the S&P BSE Sensex was down 170.21 points, or 0.54% to 31,639.34.

On the BSE, 5,980 shares were traded in the counter so far, compared with average daily volumes of 4,720 shares in the past one quarter. The stock had hit a high of Rs 1,280 and a low of Rs 1,205 so far during the day. The stock hit a record high of Rs 1,320 on 27 July 2017. The stock hit a 52-week low of Rs 681 on 30 September 2016.

The stock had underperformed the market over the past one month till 5 September 2017, falling 3.76% compared with 1.44% decline in the Sensex. The scrip had outperformed the market in past one quarter, rising 10.98% as against Sensex's 1.72% rise. The scrip had also outperformed the market in past one year, rising 65.08% as against Sensex's 9.77% rise.

The mid-cap company has equity capital of Rs 16.60 crore. Face value per share is Rs 10.

Merck announced that its ultimate holding company, Merck KGaA, Germany, is preparing for strategic options for its consumer health business globally, including a potential full or partial sale of the business as well as strategic partnerships. This strategic initiative would involve the company's consumer health business in India as well, the implementation of potential measures and their specific design are subject to further analysis and decision making by competent bodies, the company said in a statement.

Merck's net profit fell 11.6% to Rs 20.13 crore on 3.7% decrease in net sales to Rs 251.61 crore in Q2 June 2017 over Q2 June 2016.

Merck is engaged in manufacturing and marketing of pharmaceuticals, bulk drugs, fine chemicals and pigments. The company operates through two segments: pharmaceuticals and chemicals.

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