Despite an over 86 percent gain in the stock in 2023 YTD, domestic brokerage house Investec sees pharma firm Orchid Pharma (ORCD) rising another 23 percent in the next 12 months. The brokerage has initiated coverage on the stock with a ‘buy’ call and a target price of ₹800.
Stock market today: Orchid Pharma s share price hits new 52-week high as the drugmaker launches Qualified Institutional Placement issuance to raise capital.
Orchid is among a handful of Indian companies to post meteoric gains after exiting bankruptcy proceedings. Such rallies could pose considerable risks for investors as those firms typically dont have good fundamentals, according to some market watchers.
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NEW DELHI: The spectacular rally witnessed on Dalal Street since the March lows seems to have hit the bumps amid weak global cues and valuation concerns.
Despite these frequent setbacks, one scrip has defied gravity and soared over 6,100 per cent in just four months. Analysts are comparing this stellar run with the surge that Ruchi Soya shares saw after Baba Ramdev’s Patanjali Group acquired the company last year in a bankruptcy sale.
The stock is Orchid Pharma, which was relisted on November 3, 2020 at Rs 18 and has since surged 6,160 per cent to trade at Rs 1,129 on March 5, 2021. The scrip is hitting upper circuits ever since it got relisted.