We recommended Wockhardt Ltd
in Sep-12 (Refer : http://atulgandhicom.blogspot.in/2012/09/reborn-with-vigour-vitality-wockhardt.html)
Share price appreciated subsequently from Rs
1184 to Rs 2166 in Mar-13.
We saw steep fall in share price in last week, price
touching to low of Rs 1066 (Current price Rs 1277). Management has informed “Company
has received an 'import alert' from USFDA on one of its manufacturing unit
located in Waluj near Aurangabad. The impact of the import alert on the
revenues is estimated to be in the range of $100m on an annualised basis. The
Company is taking all steps to address the concerns raised by USFDA and shall
put all efforts to resolve the issue at the earliest.”
FY2013
company’s sales has grown to Rs 5609 crore from Rs 4351 crore in FY2012, an
impressive 29% growth. $100m approximately constitute 10% of company’s FY2013 sale.
Impact of ‘import alert’ can lead to sluggish growth in current financial year.
It
may take few months to resolve ‘import alert’ issue & thereafter we will see re-rating of
stock price. We believe there is potential for appreciation in Wockhardt Ltd stock & recommend to
hold / renter.
Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.