Wockhardt Limited is an international pharmaceutical and biotechnology company based in Mumbai, India. It is known for providing high-quality, affordable medicines along with its chain of super speciality hospitals.
The market capitalisation of Wockhardt Limited, as of August 16, 2018, was a little over Rs.6,800 crore.
Company’s Wealth and Recent Performance
- For the June quarter of the FY 2018-19, Wockhardt Limited reported its consolidated revenue from operations to be at Rs.1,007.71 crore - an increase of 13% with respect to the same quarter last year.
- This increase in sales was led primarily by a substantial growth in the business in the United States, India, and emerging markets. The India business grew by 30% y-o-y to stand at Rs.395 crore on June 30, 2018 while the US business grew by 20%.
- The company’s business in the emerging markets reported an exceptional increase of 36%, y-o-y. During the June quarter, Wockhardt Limited also boosted its intellectual property base by filing for 19 patents. The company was also granted 15 patents during the quarter.
- Despite a good increase in the revenues, the company reported a loss for the quarter. Its losses narrowed to Rs.86.18 crore from Rs.409.66 reported for the same quarter of the previous year. This loss came on the account of an increase in the expenditure for the period.
- For the period, the company spent 6% of its sales on research and development.
Wockhardt Limited Stock Trends in 2018
- On January 2, 2018, the opening stock price of Wockhardt Limited on the NSE was Rs.931.80. At the end of the first week, the scrip moved up to reach its 52-week high at Rs.1,012. However, after reaching this level, the scrip moved on to shed more than 20% in the second half of the month. The closing price on January 31, 2018, was Rs.804.85 on the NSE.
- The month of February was quite rocky for the investors. The shares lost a little under 5% in the first three weeks. In the final few days of the month, the share price of Wockhardt appreciated by a small margin. As a result, the scrip ended the month of February on a positive note at Rs.820.10.
- In early March, the Wockhardt Limited shares were trading at levels above Rs.820. The scrip lost a little over 10% over the course of the month. The closing price on March 28 was Rs.726.50. Things improved slightly in April as the stocks ascended back to their previous levels at Rs.820 - Rs.830.
- This rally did not last for long as the scrip lost heavily in the month of May. The scrip lost more than 15% in the period to end the month at Rs.684.85. The stocks recovered slightly in the first half of June, only to follow it with a sharp plunge in the second half.
- A similar trend was seen in July as well and this time, the stocks descended into the Rs.500 territory. The closing price on July 31, 2018, was Rs.588.20.
Wockhardt Limited Stock Trends in 2016 and 2017
- At the start of 2016 in January, the share price of Wockhardt Limited was varying at levels close to Rs.1,500. In the second half of the month, the share price took a sharp nosedive and lost 20% in little over a week.
- The price continued to fall rapidly through the first half of February as well, with the stocks entering the Rs.700 territory. In just little over a month, the stocks lost as much as 40%. The prices recovered slightly in March to enter the Rs.900 region. Through the course of April, May, and June, the shares traded hands steadily at levels varying from Rs.910 - Rs.1,000.
- Similar was the case for most of July and early August as well. In the first half of August, the scrip lost more than 15% in just a week to descend into the Rs.700 region once again. The remainder of the year wasn’t a cheerful one for the investors either.
- The share price of Wockhardt Limited continued to go down and eventually entered the Rs.600 territory. In November, the company announced an interim dividend of 200%. The closing price at the end of the year was Rs.657.75.
- Most of 2017 was uneventful for the investors. There were no discernible bull runs and the stock didn’t make any exceptional gains over the year. Over the course of January, February, and March, the shares traded hands steadily at levels above Rs.700. The scrip appreciated by a little over 10% in this period.
- Through the course of April and May, the share price went down and the scrip entered the Rs.500 region. The scrip had essentially shed all the gains it made in the first quarter of the calendar year. In June and July, the prices recovered marginally, although, the share price of Wockhardt Limited never went beyond the Rs.650 mark. In August, the shares reached their 52-week low at Rs.530.65.
- It wasn’t until late October that the investors finally started to see the Wockhardt shares pick up some momentum. On October 19, 2017, the closing price of the scrip was Rs.614.45. The same on December 29, 2017, was Rs.931.35. In just a little over two months, the shares gained 50% to end the year on a high.
Should you invest in Wockhardt Limited?
- Wockhardt Limited is a global biotechnology and pharmaceutical company that is engaged in the business of production and marketing of formulations, Active Pharmaceutical Ingredients, and vaccines. In addition to this, it also runs its own chain of speciality hospitals known as Wockhardt Hospitals. The company has a strong presence in Indian and international markets.
- Considering the consolidated performance of the company for the June quarter, Wockhardt Limited reported a net loss of Rs.86.18 crore as against a loss of Rs.409.66 crore reported for the same quarter, last year. For the year ended on March 31, 2018, Wockhardt Limited’s net loss was that of Rs.608.30 crore.
- If we are to look at the performance of the company’s stock since 2016, we will see that the scrip has been rather stagnant. 2016 witnessed the stocks shed more than 50% since the start of the year. There has been no discernible bull runs and the share prices have varied mainly from Rs.570 - Rs.650. There were a couple of instances when the scrip did surpass these values to deliver good returns, however, the stocks ended up shedding those gains just as soon as it made them. Furthermore, the company hasn’t delivered a dividend since 2016 November.
- Considering its performance with respect to its peers, Wockhardt Limited ranks considerably lower in terms of sales turnover, assets, and profit. The are other companies in the pharmaceutical sector which may offer a better prospect to an investor. Whatever may be the case, it is strongly recommended that you do your own research before investing.
Wockhardt Limited is an international pharmaceutical and biotechnology company based in Mumbai, India. Its business operations include production and marketing of biopharmaceuticals and pharmaceuticals formulations, vaccines, Active Pharmaceutical Ingredients, and nutrition products. It is also focussed on research and development with special emphasis on pharmaceutical and biotechnology. The company has 12 manufacturing units and three R&D centres and has a market presence in more than 50 countries. It is a prominent brand in Europe and in the emerging markets, and presently employs more than 8,500 people worldwide. In addition to this, Wockhardt Limited is also engaged in the business of providing world-class healthcare services through its chain of speciality hospitals.
History of the Company
The roots of the company can be traced back to the late 1950s when Mr. Fakhruddin T. Khorakiwala acquired Worli Chemical Works and laid the foundation for the company. In the 1960s, his son, Dr. Habil Khorakiwala founded the company and in 1973, the group was incorporated as Wockhardt Private Limited. In 1989, Wockhardt Limited started offering healthcare services through its separate entity known as Wockhardt Hospitals. In January 1990, it established its first medical centre in Kolkata. The company went public in 1999 and as a result, it was renamed to Wockhardt Limited. Over the years, the group has acquired many companies - domestically and internationally, to consolidate its position and strengthen its operations. Some of its acquisitions are Wallis Laboratory, U.K., Merind, India, Dumex, India, Marton Grove, U.S.A., and Negma, France.
Management of the Company
Dr. Habil F. Khorakiwala - Founder and Executive Chairman
Dr. Habil F. Khorakiwala founded the Wockhardt Group in 1967 and presently serves as its Executive Chairman. From 1967 to August 2017, he served as the group’s Chief Executive Officer. In addition to this, he served as the Managing Director of the group until April 2009. Apart from his responsibility as serving as the group’s Executive Chairman, he also serves as the Chairman at Wockhardt USA Inc. and Wockhardt Hospitals Limited. He also serves as the Director at Wockhardt Hospitals Limited, Wockhardt Europe Limited and as the Chairman of the Board at Khorakiwala Holdings and Investments Private Limited. He finished his Bachelor’s from Purdue University in Pharmacy and followed it with a Master’s degree from the same university. He is also an alumnus of the Harvard Business School.
Dr. Murtaza H. Khorakiwala - Managing Director and Executive Director
Dr. Murtaza H. Khorakiwala presently serves as the Managing Director of Wockhardt Limited - a position he has held since April 2009. He finished his graduation in Medicine from the GS Medical College, Mumbai, and honed his business skills at the University of Illinois, U.S.A., where he obtained his Masters’ in Business Administration. Over the years, he has held various key positions in the Wockhardt Group, such as serving as the Director of Wockhardt Bio AG and as the Executive Director of Wockhardt Hospitals Limited. In addition to his current position, Dr. Murtaza Khorakiwala serves as the Director of Khorakiwala Holdings and Investments Private Limited and Dartmour Holdings Private Limited.
Mr. Manas Datta - Chief Financial Officer
Mr. Manas is currently the Chief Financial Officer of Wockhardt Limited and he has held this position since September 2014. Prior to this, he was connected with the EIH Associated Hotels Limited where he served as the Chief Financial Officer, Vice President of Finance, and Vice President of Finance and Accounts. He also served as the Vice President of Finance at the Oberoi Group. He has worked across a broad spectrum of business fields, ranging from chemicals and fertilisers to power and hospitality. He has more than 24 years of experience in business control and accounting, and corporate finance. Some of the companies that he has worked with in the past are Chambal Fertilisers and Chemicals Limited, BHW Birla Home Finance Limited, and Duncans Industries.
Wockhardt Limited Stock Listings in NSE, BSE, and Indices
The equity shares of Wockhardt Limited are available to the general public for trading. The shares are listed on the country’s two prominent stock exchanges - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The call signs for the same have been mentioned below:
- NSE Code: WOCKPHARMAEQ
- BSE Code: 532300
- ISIN: INE049B01025
- Sector: Pharmaceuticals
Coming to the stock market indices, the company comprise the following:
- Nifty 500
- Nifty 200
- Nifty Midcap 100
- Nifty MidSmallcap 400
- S&P BSE AllCap
- S&P BSE Healthcare
- S&P BSE MidCap
- S&P BSE 500
- S&P BSE MidSmallCap
Aurangabad - 431006
Contact number: +91-22-2653-4444
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