Hikal - Pharma & Agrochem

[pikrohit]

@be_nitin

Had these shutdowns been disclosed appropriately the shock element could have been managed properly and panic reaction avoided.

Totally agree with the above point. I think it was completely unacceptable to not disclose this important info.

@be_nitin

If one is to believe the management and assume that there was no malicious intent in withholding of information, then this could be a good opportunity to accumulate the stock in a staggered manner at this price. A more conservative approach would be to sell on any rise, watch the coming qtrs and then act accordingly. I am inclined to give them a benefit of doubt.

I am also inclined to give them the benefit of doubt. My reading is that they are not in the “chor” category and have had a decent track record in terms of capital allocation, delivering results etc. But I would rather wait for numbers to show up. The problem is that after such an incidence there is a trust deficit and I think the stock will remain under pressure till some positive news comes or Q3 results are in line with earlier expectations. As @aruncph mentioned, I am not convinced about the H2 reply either. They just kept agreeing to whatever the analysts were asking. I would be surprised if they cross 450cr revenue in Q3.

Hitesh has also posted his comments on his thread

Hitesh portfolio

@Rohit_b Hikal numbers are poor and there is no getting around it. And the stock has been punished in line with the numbers. With these kind of numbers the investors faith tends to get shaken. I expect not much upside from the stock till next quarter numbers or if anticipation is of good numbers then there can be an anticipatory rally. There can be a bounce once the initial kneejerk selling subsides and one needs to see the contour of the bounce to make a call. The promise of blockbuster FY…