Merck on a new high

about 1 year ago
No image

Merck hit a new high today at Rs.2105, going up 10.5% and it continues to trade firmly in the green zone.

Once again, it is the effect of the Q4FY18 earnings. The company posted a very healthy 53% (YoY) jump in net profit at Rs.23 crore on a good 27% rise in revenue at Rs.301 crore.

The exceptional gain of Rs.6.5 crore on account of office property sale in Mumbai in the Q4FY18 also helped the surge in bottomline.

Operationally too it did very well which is evident from the operating profit which was up 84% at Rs.42 crore while margins showed a good jump from 9.9% to 13.8%.

After some rough three years, things are looking up for the company. Analysts too have turned bullish on the stock – 74% of the 23 analysts covering the stock have given it a “buy” or “outperform.”

The company is divesting 52% of its stake in the international consumer health business of Germany’s Merck KGaA to P&G for Rs.1300 crore.

According to a public announcement, Procter & Gamble Overseas India BV along with P&G have made a mandatory offer to acquire 26% from public shareholders for up to Rs.648 crore, taking the total cost of acquisition in India to Rs.1,948 crore.
The offer is made at a price of Rs 1,500.

Articles you may also like

Popular Comments