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Gland Pharma down 33% in two days, Shreyas Shipping hits 20% upper limit

The miss comes on the back of a key customer filing for bankruptcy, high competition from Chinese players, and production shutdowns

Gland Pharma

BS Reporter

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Shares of Gland Pharma declined 17 per cent on Monday, extending its two-day loss to 33 per cent. The company’s shares ended at a new record low of Rs 894. The stock is now down 40 per cent over its IPO price and down 72 per cent over its one-year high.

The sharp losses come after the Shanghai-based Fosun Pharma-promoted firm missed revenue estimates for the 2022-23 (FY23) January-March quarter by a wide margin, capping a tumultuous FY23. The miss comes on the back of a key customer filing for bankruptcy, high competition from Chinese players, and production shutdowns.

“For Gland, we have assessed the fair value range of 15-20x one-year-forward earnings. Given the increased uncertainty, and vulnerability to generic market pressures, we expect the stock to trade toward the lower end of this range. We reduce our target multiple from 18x to 16x. We arrive at a target price of Rs 1,157 based on 16x FY25F EPS of Rs 72.3,” said Nomura in a note.

The brokerage has downgraded the stock from ‘neutral’ to ‘reduce’.

Shreyas Shipping

Shares of Shreyas Shipping & Logistics on Monday hit a 20 per cent upper trading limit after the company announced a voluntary delisting plan. In a regulatory filing on Sunday, promoter entity Transworld Holdings said it plans to acquire all the shares held by public shareholders and delist the company from the NSE and the BSE.

Shreyas Shipping’s board will meet on Wednesday to consider the delisting plan. At present, the promoter shareholding in the company stands at 70.44 per cent.

Indian delisting rules favour public shareholders. In the past, shares of delisting bound companies have seen sharp up moves in the run up to the delisting bid.

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First Published: May 22 2023 | 5:18 PM IST

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