Hikal stock slips 11% on closure notice for unit from Maharashtra pollution board

Hikal share price fell over 11 percent in early trade today after the firm received a notice from the Maharashtra Pollution Control Board for closure of Taloja unit within 72 hours.

Hikal stock touched an intraday low of Rs 363.7, falling 11.33% on BSE. Hikal shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Total 1.06 lakh shares of the firm changed hands amounting to a turnover of Rs 4.06 crore on BSE. The stock opened with a loss of 8.83% at Rs 373.95 today against the previous close of Rs 410.15 on BSE. Hikal share has gained 140% in one year and fallen 25% since the beginning of this year.

The share touched a 52-week high of Rs 742 and a 52-week low of Rs 142.85 on 17 August 2021 and 31 March 2021 respectively.

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Hikal received the notice on February 15 in view of certain alleged non-compliances and the recent Surat issue, the company said.

"The Company is taking appropriate legal measures as advised by counsels before the Pollution Board as well as Courts to remedy the situation and seek reliefs against the Closure Notice," it said in a communication to bourses.

The Taloja unit had contributed approximately Rs 260 crore amounting to around 15% of the turnover for financial year 2020-21. The company had reported a 12.21 percent rise in Q3 net profit at Rs 45.20 crore against Rs 40.28 crore a year ago.

However, revenue  rose 11 percent at Rs 514.53 crore against Rs 463.29 crore a year ago.

Hikal Limited is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharmaceutical ingredients (APIs) and contract research activities. The company offers pharmaceuticals and agrochemicals.