Wockhardt jumps on bargain hunting

Wockhardt jumped 4.09% to Rs 1,280 at 11:25 IST on BSE on bargain hunting after the stock fell 33.46% in the preceding six sessions to Rs 1,229.70 on 24 May 2013, from a recent high of Rs 1,848.10 on 16 May 2013.

Meanwhile, the S&P BSE Sensex was up 161.54 points, or 0.82%, to 19,865.87.

On BSE, 1.97 lakh shares were traded in the counter as against an average daily volume of 74,839 shares in the past one quarter.

The stock hit a high of Rs 1,324.40 and a low of Rs 1,259.70 so far during the day. The stock had hit a record high of Rs 2,166.05 on 12 March 2013. The stock had hit a 52-week low of Rs 766.10 on 25 May 2012.

The stock had underperformed the market over the past one month till 24 May 2013, sliding 33.51% compared with the Sensex's 2.74% rise. The scrip had also underperformed the market in past one quarter, falling 36.32% as against Sensex's 2.01% rise.

The large-cap company has an equity capital of Rs 54.79 crore. Face value per share is Rs 5.

The recent slump in the stock was triggered by US drug regulator imposing an import alert on a plant operated by the company.

Wockhardt announced during trading hours on Friday, 24 May 2013, that it received an import alert from US Food and Drug Administration (USFDA) on one of the company's manufacturing unit located in Waluj near Aurangabad. The impact of the import alert on the revenues is estimated to be in the range of $100 million on an annualised basis. The company said it is taking all steps to address the concerns raised by USFDA and will put all efforts to resolve the issue at the earliest.

According to media reports, the import alert was issued on Wednesday, 22 May 2013. Shares of Wockhardt slumped 20% to Rs 1,315.25 on Thursday, 23 May 2013. It fell 6.50% to Rs 1229.70 on Friday, 24 May 2013.

The stock slumped 25.20% in two consecutive sessions to Rs 1,229.70 on Friday, 24 May 2013, from Rs 1,644.05 on Wednesday, 22 May 2013.

Wockhardt's consolidated net profit jumped 101% to Rs 427.84 crore on 25.8% growth in net sales to Rs 1435.04 crore in Q3 December 2012 over Q3 December 2011. The company will announce its year ended March 2013 results today, 27 May 2013.

Wockhardt is a high-technology intensive global pharmaceutical and biotechnology company with multi-disciplinary and innovative R&D programmes. It has three research centres globally and manufacturing facilities across India, USA, UK and Ireland. The company has a significant presence in USA, Europe and India, with 80% of its global revenues coming from international businesses.

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