Orchid Chemicals recovers from Monday's rout

Orchid Chemicals & Pharmaceuticals moved up 3.38% to Rs 131.35 at 10:34 IST on BSE on account of value buying after a severe margin call saw the stock decline around 39% on Monday, 17 March 2008.

The scrip had touched a high of Rs 137 and a low of Rs 125 so far during the day. The stock had hit a 52-week high of Rs 328 on 17 January 2008 and a 52-week low of Rs 119.20 on 17 March 2008.

The small-cap drug maker has an equity capital of Rs 65.85 crore. Face value per share is Rs 10.

At the current price of Rs 131.35, the scrip trades at a PE multiple of 3.99, based on Q3 December 2007 annualised EPS of Rs 32.88.

The Orchid Chemicals stock tanked 39.09% on Monday, 17 March 2008. The Orchid management in a media interview on Monday, 17 March 2008 told that they have sold 7% of their stake due to margin calls. As the margin calls positions are being cleared, the promoters have no further plans to sell more shares, the management further added.

The promoters of Orchid Chemicals offloaded nearly 20.20 lakh shares of the company in the price range of Rs 131 - Rs 133.86 on Monday, 17 March 2008, as per latest data on BSE. Investment bank Credit Suisse Singapore bought 9.36 lakh shares of the company at Rs 128.24 on Monday.

The net profit of Orchid Chemicals & Pharmaceuticals rose 91.1% to Rs 54.12 crore on 39.4% rise in sales to Rs 332.69 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and selling pharmaceuticals ingredients and finished dosage forms. It focuses on the cephalosporin range of antibiotics. The company exports to Asia Pacific, Europe, Middle East, South and Central America, North America and Commonwealth of Independent States (CIS) Countries.