Strides Shasun went up 4 per cent to Rs 1,095 on BSE in early morning trade after the pharmaceuticals company disclosed that Mylan agreed to settle regulatory and general claims on Agila transaction. Strides and Mylan have decided on a full and final settlement of all regulatory claims notified by Mylan to the company and the subsidiary.
Pursuant to this full and final settlement, Mylan’s regulatory concerns claims will be satisfied from the regulatory escrow, and Strides will will be given approximately US$ 30 million, showing the balance of funds it deposited in the regulatory escrow on consummation of the Agila sale pursuant to the Sale and Purchase Agreements, it added.
Also, Strides and Mylan have now agreed on a full and final settlement of the Warranty and Indemnity Claims. The general claims are valid till December 2017. In the last one-week, after July-September (Q2FY17) quarter results, the stock rallied 14 per cent from Rs 940 on October 27.
Strides Shasun had registered a more than doubled consolidated net profit of Rs 74.09 crore for the second quarter FY17. It had clocked a profit of Rs 35.81 crore in year ago quarter. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved 100 basis points to 18 per cent from 17 per cent.
The company has guided EBITDA between Rs 440 crore to Rs 475 crore for H2FY17 for the pharmaceutical business. It had reported EBITDA of Rs 364 crore in H2FY16. As of now, Strides Shasun share price is trading above 2 per cent at Rs. 1076.00. The stock opened at Rs. 1051.00 against its previous closing at Rs. 1047.70.
Dynamic Levels have identified Strides Shasun as one of the top 500 performing stocks for this quarter. For further details on the stock, refer to Strides Shasun share price forecast.
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