API business demerger: A value enhancer for Strides

Move will allow company to focus on its core business leading to higher margins

Strides Shasun's announcement regarding the demerger of its API (active pharma ingredients) business in February was cheered by the street. The stock had then scaled to its 52-week high of Rs 1,259 on 3rd February before closing at Rs 1,190 or a gain of almost 10 per cent (in a couple of sessions). With Strides now providing the demerger details, it's not surprising that the stock was flat on Wednesday. But, what's more important is that the move is seen as value accretive by analysts, who also believe there are potential gains for the stock going ahead.

Here how? The commodity