Shares of Granules India tumbled over 16 per cent during intraday trading on Thursday, September 12, after the company announced that the inspection of its Gagillapur FD facility by the USFDA, conducted from August 26 to September 6, 2024, concluded with six observations.
In response, the company issued a statement to reassure concerned investors, underscore its commitment to resolve the issues raised. “We acknowledge that many investors have sought clarifications, and we would like to assure them that we are actively addressing the comments and remain fully committed to resolving the issues raised,” Granules India said in its stock exchange filing.
The company further added that, “At Granules, quality and compliance are paramount, and these principles are deeply embedded in our ongoing review and governance processes. We will work with the USFDA to resolve the issues raised in the comments.” Granules India also assured investors that it will provide timely updates on the matter.
stock price trend
Granules India stock fell a massive 16.3 per cent to hit an intra-day low of ₹566.80 on September 12. With this massive fall, the stock is now trading nearly 22 per cent below its all-time high of ₹724.55, which it touched earlier this month. Despite the recent correction, the stock has performed remarkably in the past one year, trading 81 per cent up from its 52-week low of ₹313 recorded in September 2023.
The stock has delivered multifold returns in the last 12 months, gaining nearly 120 per cent. In 2024 alone, Granules India has gained nearly 40 per cent. However, after posting impressive gains for three consecutive months, the stock has corrected nearly 21 per cent in September. The stock rallied 14 per cent in August, followed by a notable rally of 28 per cent in July and a 17 per cent gain in June.
The recent sell-off after an impressive rally highlights the volatility surrounding the stock, especially amid regulatory scrutiny. Investors will closely monitor developments as the company addresses the observations raised by the USFDA during its inspection.
