Wockhardt shares surge over 19% in four sessions, here is why

Shares of drugmaker Wockhardt rose for a fourth straight session on Wednesday, May 6. The stock has surged as much as 19.54% in the last four trading sessions and in intraday deals on Wednesday the stock advanced as much as 8.32% to hit an intraday high of ₹1,640 on the National Stock Exchange (NSE).

Wockhardt shares came under buying interest a couple of days ahead of its earnings announcement. The Mumbai-based drugmaker on Monday said that its standalone net profit in January-March quarter jumped by a whopping 317% to ₹167 crore compared with ₹40 crore in the same period last year.

Its revenue from operations advanced 45% to ₹516 crore and its operating profit also known as earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 52% to ₹161 crore.

On a consolidated basis, Wockhardt's net profit came in at ₹164 crore compared with a loss of ₹25 crore in the year-ago period.

Wockhardt said that the overall biotech operations for the quarter stood at ₹252 crore recording an annual growth of 126%. On full year basis the biotech operations recorded 27% growth while delivering ₹697 crore.

"This robust achievement is fuelled by our emerging market biotech segment growing at > 34 % on FY25 with accelerated business opportunities and strategic business partnerships, new deal acquisitions from our key markets like Thailand, Egypt, Algeria and LATAM. Our India Biotech operations continue to grow at double digit pace and is poised for decent growth in the future," the Mumbai-based drugmaker said in a press release.

India branded business rose 18% to ₹112 crore in Q4, UK business rose 20% to ₹349 crore, emerging market business advanced 124% to ₹320 crore and Irish region business stood at ₹52 crore, registering growth of 12%.

The company filed for 15 filings and got 13 approvals and launched 23 drugs in global markets.

As of 10:02 am, Wockhardt shares traded 7% higher at ₹1,644, outperforming the NIFTY Smallcap 100 index which was up 0.8%.