Hikal at new high

Hikal is one stock which seems to be stuck among the top 5 gainers on the BSE since the morning. The stock, which had closed yesterday at Rs.285.15, opened higher today at Rs.295 and went to hit its 10% UC of the day at Rs.313.65, a new 52-week high, where it now remains frozen.  

The company announced today morning that it has signed a multi-year contract with a leading global pharmaceutical company (name has not been mentioned).

Hikal and its customer will be jointly investing at its Panoli, Gujarat site to setup a multipurpose manufacturing asset for manufacturing of these API’s.

This contract entails the development and supply of a portfolio of niche APIs over a period of 10 years.

The development will start this year and commercial supplies will commence post successful development and plant commercialisation estimated to be in FY 2024 onwards.

With this deal, Hikal is entering into a niche area of chemistry and products thereby bolstering its Animal Health vertical.