Shares of Cadila Healthcare rose over 3% in the early trade on Thursday after the company announced it has acquired remaining 15% stake, each in its subsidiaries Zydus Technologies Ltd and Zydus Noveltech Inc worth $250,000 from strategic and minority partner of ZTL, Shared Govil. Following the acquisition of the stake, the two companies will become wholly-owned subsidiaries of Cadila Healthcare Ltd.
The 15% stake in ZTL, representing 7.5 million fully paid-up equity shares of Rs 10 each was valued at $225,000 (roughly Rs 1.62 crore), while 15% stake of another subsidiary, Zydus Noveltech Inc, USA (ZNI) was valued $25,000 (approximately Rs 18 lakh), the filing added. The company expects the acquisition to complete within a month.
Although the stock started 2.52% lower, opening with gap-down chart pattern today, it recovered from losses and rose 3.7% intraday to touch an intraday high of Rs 232.95 on the BSE.
Cadila shares have outperformed 'Pharmaceuticals' sector by 2.6%, where the sector has fallen 0.19% intraday. Although the Cadila shares had a trend reversal after 4 days of consecutive fall, the share value has fallen 2% in the last week, 1% in one month and 33% year-to-date.
Currently, shares amounting to 0.82 lakh and 19.18 lakh are changing hands on the BSE and NSE counters, both above 5,10 and 30-day average volume traded.
Cadila Healthcare shares dipped earlier as the company on Wednesday reported a 74.32% decline in net profit to Rs 107.2 crore for the second quarter ended September 30 compared to Rs 417.5 crore recorded during the same period in previous fiscal.
As per the company' regulatory filing, the net profit during the quarter was a miss due to a large impairment charge of Rs 268 crore towards Levorphanol intangibles on account of the entry of a new competitor.
On the contrary, drugmaker's total revenue from operations rose 13.4% to Rs 3,393.5 crore as against Rs 2,991.6 crore in the year-ago period.
Company's EBITDA declined 9% on a year-on-year basis to Rs 625.6 crore, while its margin contracted 460 bps to 18.6% in quarter ended September 2019.
As of 1145 IST, shares of Cadila Healthcare are currently trading at day's high, rising 3.7% higher at Rs 232.70 on the BSE.