Wockhardt Pharma shares have been declining since the start of the year. The stock has dropped 64.37% from its 52-week high of Rs. 592, set on July 2021, and with Thursday's closing price of Rs. 212, the stock is just 4.97% away from its 52-week low.
In just three months, it has fallen 29.46%, while it has lost 50.71% in the last six months. Furthermore, in the last one year, the stock has corrected by almost 60.74%.
On the technical charts, the stock is trading 66.50 per cent below its 200 DMA and 10.50 per cent below its 50-DMA. The Relative Strength Index (RSI) of the stock stands at 37.7.
The Russian-Ukrainian war hit the Indian pharma industry hard as a majority of pharma companies have a strong presence in both countries.
Further, increases in input, logistics, and power costs have damaged the margins of pharma companies in Q4.
Since the beginning of the year, the Nifty Pharma index has dropped approximately 1,499 points, falling to 12,724 from 14,223. The index hit a 52-week low on June 20. Stocks in the index have fallen 20–35% and are trading close to their 52-week lows.
Wockhardt pharma reported a consolidated net loss of ₹311 crore in the fourth quarter ended March 31, 2022, as against a net loss of ₹107 crore in the same period of the previous fiscal.
Total revenue during the quarter stood at ₹669 crore as compared to ₹640 crore in the year-ago period. while the total expenses were higher at ₹833 crore as compared to ₹818 crore in the corresponding quarter a year ago.
The company said its US business was impacted by price erosion and supply disruptions, with revenue in the quarter at ₹59 crore, down from ₹95 crore in Q4 of FY21.
For the fiscal ended March 31, 2022, the consolidated net loss was ₹279 crore. The company had posted a consolidated net profit of ₹688 crore in the previous fiscal.
Meanwhile, Rakesh Jhunjhunwala has trimmed his stake in Wockhardt Pharma, according to media reports. In Wockhardt, the big bull has cut his stake to 2.08 per cent in the March 2022 quarter from 2.26 per cent in the December 2021 quarter. However, the number of shares held changed following the rights issue of the company in March 2022.
Wockhardt came up with a rights issue of ₹748 crores in March for the issue of up to 3.32 crore rights equity shares at ₹225 per share. The company set a ratio of 3 rights equity shares for every 10 fully paid-up equity shares held by the eligible shareholders on the record date.
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