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Merck shares hit record high after jump in profit


Merck shares hit record high after jump in profit

Shares of Merck Ltd rose as much as 14.1 percent to their all-time high of Rs 2,172.8. The stock posted its biggest intraday percentage gain in a week.

At about 12 pm, Merck was up 9.91 per cent or Rs 188.95 at Rs 2,095 on the BSE.

Merck reported a 53 percent jump in March-quarter profit on Friday, boosted by a 22 percent rise in revenue from its pharmaceuticals business.

IDBI Capital said margins at the company’s pharma and chemical segments improved. Given some products exiting the National List of Essential Medicines, there could be further improvement in pharma margins.

It added that with an open offer being triggered as the company’s parent closed the sale of consumer business to P&G, the run-up in the stock price can be used to exit Merck India.

IDBI Capital has downgraded the stock to ‘sell’ and advised to switch from Merck to Abbott India Ltd. Merck has risen nearly 48 percent this year up to Friday, while Abbott India has gained about 12 percent.



Source: REUTERS
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