Hikal in a haze

Hikal, a month ago, was locked at the 5% UC at Rs.115 after it had announced that it has successfully developed Favipiravir active pharmaceutical ingredient (API) and its intermediates.

And yesterday evening, it announced the impact of the Covid on its operations:

• It restarted operations from 5th April 2020.
• Due to the continued restriction in the movement of people and material by the government, the company is not able to operate at its optimal capacity.
• Currently running at approximately 80 - 85% capacity utilisation at all its manufacturing sites.
• Working with approximately 75-80% manpower at its manufacturing units.
• There are circumstances where delays and non-availability of raw materials are being experienced.
• There has been no cancellation of any orders/projects/contracts.
• Majority of its revenue comes from exports and business operations across the world has been impacted due to the spread of COVID-19 pandemic.

The stock price today opened with a loss of over 4% at Rs. 113.30 and went down further by more than 5% to hit an intraday low at Rs.112. It has recouped a bit though it remains in the red at Rs.116 levels.