Morepen Laboratories shares surged nearly 10 per cent in the early trade after media reports that the company is in talks with Ajay Piramal Group to sell its OTC (over-the-counter) business
Morepen Laboratories shares surged nearly 10 per cent in the early trade after media reports that the company is in talks with Ajay Piramal Group to sell its OTC (over-the-counter) business of market leading brands such as Burnol. This step has been taken in order to monetise some of its mainstream brands when larger rivals look to expand their consumer product portfolio. Morepen has mandated Deloitte Touche Tohmatsu to run a formal process and the negotiations are at quite an advanced stage. The company however on a clarification sought by BSE said that no such negotiations are taking place.
At 9.34 am, shares of Morepen Laboratories were trading 6.25 per cent up at Rs 26.35. The scrip opened the day Rs 26.70 and has touched a high and low of Rs 27.25 and Rs 26.10, respectively, in trade so far. Later, the scrip ended 5.44 per cent up at Rs 26.15.
For the quarter ended June 30, 2016, the company reported net profit of Rs 4.01 crore, up 60.39 per cent, against Rs 2.50 crore in the corresponding quarter a year ago. Net sales of the company grew 17.58 per cent year-on-year to Rs 116.72 crore for the quarter under review against Rs 99.28 crore in the same quarter a year ago. Operating profit of the company jumped by 5.60 per cent year-on-year to Rs 14.38 crore.
In the past one year, shares of the company have risen 82.62 per cent to Rs 24.80 till September 22, whereas BSE Sensex dipped 12.17 per cent during the same period. During the year, the scrip hit its 52-week high of Rs 41.80 on January 5, 2016 and 52-week low of Rs 13.40 on September 29, 2015.