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Shilpa Medicare share tumbles 35% in 10 days on weak Q1 earnings

BusinessToday.In     August 27, 2019

Shares of Shilpa Medicare extended losing streak on Tuesday and fell nearly 12 per cent in intra-day trade on the Bombay Stock Exchange (BSE). The stock has tumbled as much as 35 per cent since August 13 after the drug manufacturer declared results for the April-June quarter (Q1FY20).

The company had posted 55 per cent decline in its consolidated net profit at Rs 14.96 crore as against Rs 33.15 crore during the same quarter last year. Net sales during June quarter declined 19 per cent at Rs 161 crore from Rs 198.17 crore in the year-ago period.

Extending its previous session losses, Shilpa Medicare share price declined as much as 11.77 per cent to hit a 5-year low of Rs 215 after opening lower at Rs 236 on the BSE. The scrip closed day's trade at Rs 220.45, down 9.54 per cent.

The stock also saw a spurt in volume trade as 5,226 shares changed hands over the counter as compared to a two-week average volume of 4,748 shares on the BSE.

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In a similar trend, stock of Shilpa Medicare fell as much as 9.60 per cent to hit a record low of Rs 219.45 on the National Stock Exchange.

Commenting on the price movement, Shilpa Medicare in an exchange filing said that the fluctuation in share prices was due to the first quarter financial results.

"The price movement of equity shares of Shilpa Medicare can be largely attributed to the financial results for the first quarter ended June 30, 2019 declared on August 13, and the subsequent market reactions thereon," it said in the exchange filing.

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Last month, the drug manufacturer received five observations from the US health regulator (USFDA) for its Raichur facility after the completion of an audit between July 22 and 26, 2019.

Edited by Chitranjan Kumar

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