Shivalik Rasayan shares skyrocket 10% despite 7 observations from US FDA

​Shivalik Rasayan share price: Shivalik Rasayan shares skyrocketed on Wednesday, April 10 despite the United States Food and Drug Administration (US FDA) issuing seven observations for its API facility in Bharuch, Gujarat.

Shivalik Rasayan shares skyrocketed as much as 9.76 per cent to the day's high of Rs 618.4 on NSE in morning deals, reversing the four-day downward trend. The counter closed at Rs 595.6, up 5.72 per cent on NSE.

The company's filing dated April 9 said, "The United States Food and Drug Administration (US FDA) inspected the API facility of Shivalik Rasayan Limited at Plot No. D-2/CH/41/A, Dahej- II, Industrial Estate V- Vaddala TVagra, Bharuch, Gujarat, 392140 from April 01, 2024 and concluded on April 09, 2024 at 05.30 PM."

Management Outlook

Calling these observations procedural, the company said that it will respond within the stipulated time.

"The inspection closed successfully with 7 observations only. These observations are procedural in nature and will be responded within the stipulated time," the filing further said. 

Shivalik Rasayan share price target

"Shivalik Rasayan stock may witness some more buying from the current levels for the target of Rs 620 levels," Ravi Singh SVP-Retail Research Religare Broking said. "However, investors are closely watching the response of the company to the US FDA's recent inspection. Any negativity may initiate selling pressure in the stock for the levels of Rs 525, he added. 

Shivalik Rasayan share price history

Shivalik Rasayan shares have declined over 20 per cent in last one year underperforming the 29 per cent rally of 29 per cent. Shivalik Rasayan stock has a 52-week high and 52-week low ranging from Rs 893 (07 August 2023) to Rs 492.9 (14 March 2024). The company has a market capitalisation of Rs 918.06 crore, as per data available on NSE. 

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