Hikal tumbles after yesterday's high

Yesterday, Hikal had hit a new 52-week high at Rs.256.10 and it had shown some tremendous increase in volumes.

But today, the tide has turned completely though all the fundamentals remain exactly the way they were yesterday. Obviously profit taking at the higher levels today has pushed down the stock price into the red. It went down over 4% to Rs.233.10 and continues to remain around the same levels.

The company had informed the exchanges yesterday that its API and intermediates manufacturing facility located at Jigani, Bangalore was recently inspected by the US Food and Drug Administration (US FDA) in compliance with their requirements. At the end of the successful inspection, the FDA issued “zero” observations. And that is a very big deal in today’s time when established, large cap companies are being issued observations in dozens by the FDA.