Cohance Lifesciences shares slide 8% on block deals; Likely seller here

Cohance Lifesciences shares fell the most since August 14, after about 8.9 per cent stake changed hands on the NSE

Shares of Cohance Lifesciences fell over 8 per cent on Thursday after an 8.9 per cent stake changed hands through multiple block deals at market open.

 

The pharmaceutical company's stock fell as much as 8.06 per cent during the day to ₹888.5 per share, the biggest intraday fall since August 14 this year. The stock pared losses to trade 7 per cent lower at ₹895 apiece, compared to a 0.37 per cent advance in Nifty 50 as of 11:15 AM. 

 

Shares of the company fell for the second straight session and currently trade at 30 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 21 per cent this year, compared to a 7.5 per cent advance in the benchmark Nifty 50. Cohance Lifesciences has a total market capitalisation of ₹34,247.41 crore. 

Cohance Lifesciences block deals

Shares of the company fell the most since August 14, after about 34.2 million shares or an 8.9 per cent stake changed hands on the National Stock Exchange, according to Bloomberg data. Buyers and sellers were not immediately known. 

 

On Wednesday, promoter entity Jusmiral Holdings offered to sell as many as 19.5 million shares, or a 5.1 per cent stake in Cohance. The offer floor price is set at ₹900 per share, a 6.9 per cent discount to the stock's Wednesday closing price. IIFL Capital is the manager of the deal, as per Bloomberg. 

 

As of the June quarter, Jusmiral Holdings held a 33.08 per cent stake in the pharma company.  

Cohance Lifesciences Q1 results 

The company's consolidated adjusted net profit stood at ₹62.9 crore, down 24.8 per cent year-on-year (Y-o-Y) from ₹83.5 crore in Q1 FY25. Revenue from operations rose 12.5 per cent to ₹549.3 crore from ₹488.1 crore, supported by growth across all business segments.

 

Material margin increased 20.1 per cent year-on-year to ₹401.2 crore, with margin percentage improving to 73 per cent from 68.4 per cent, aided by a favourable business mix and contributions from recent acquisitions. 

Jefferies on Cohance Lifescience, CRDMO space

Last month, Jefferies initiated coverage on Cohance Lifesciences (formerly Suven Pharmaceuticals) with a ‘Buy’ rating and a price target of ₹1,150 per share. Jefferies notes that India’s CRDMO industry has transformed from being primarily recognised as contract research and manufacturing services (CRAMS) and a sidekick in the pharma sector to becoming a global focal point. 

 

The Indian CRDMO sector is now attracting investor interest comparable to its international peers, with the industry’s market capitalisation estimated at $40-50 billion.