Elder Pharma gets 'feverish'

Elder Pharma has crashed today morning. The stock is down over 7% at Rs.277.25, with an intra day low at Rs.270.25.

The stock is in the red as the market is not enthused with its decision to decision to sell the branded formulations division to Torrent Pharma for about Rs.2000 crore. The market is unhappy because now post this sale, the company is left with just its low-margin pharma ingredient and European business. The brands which were the money earners have now gone to Torrent thus market feels that accordingly, its valuation also needs to get corrected downwards.