Cipla shares tank over 7%, market cap tanks Rs3,785.5 crore
New Delhi: Shares of Cipla on Tuesday slumped over 7% even as the company reported a consolidated net profit of Rs434.95 crore for the second quarter ended September. The stock dropped 7.18% to end at Rs608.35 on BSE.
During the day, it tumbled 8.23% to Rs601.40. On NSE, shares of the company plunged 7.21% to close at Rs607.55. The company’s market cap fell by Rs3,785.51 crore to Rs48,953.49 crore. In terms of equity volume, 6.99 lakh shares of the company were traded on BSE and over 73 lakh shares changed hands on NSE during the day.
“Continuous negative observations by USFDA on high quality Indian pharma companies are leading to a downgrade for the sector,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd. The company had posted a net profit of Rs369.64 crore for the corresponding period of the previous fiscal, Cipla said in a BSE filing.
Consolidated total income of the company stood at Rs4,195.74 crore for the quarter under consideration. It was Rs3,778.25 crore for the same period a year ago. The company said revenue from operations for the quarter and half year ended 30 September, 2017 are not comparable with corresponding previous periods.
Meanwhile, heavy selling was also seen at other pharma counters, with Marksans Pharma tumbling 6.36%, Wockhardt falling 4.15%, Natco Pharma (3.49%) and Sun Pharma (2.50%) on BSE. Led by losses in these stocks, the BSE healthcare index fell by 3.51% to end at 14,037.53.