Shares of Windlass Biotech have seen a decline for the third day since the Company’s listing
Contract Development Manufacturing Organization (CDMO) Windlass Biotech has performed poorly in the market for the 3 days straight. At the time of writing, the prices have dropped by 3.3% (intra-day) and are trading at Rs 388. Moreover, it has reduced by 16% from its issue price of Rs 460.
Windlass Biotech is among the top players in the field of domestic pharmaceutical formulations as far as revenue is concerned. The promoters of the company are Ashok Kumar Windlass, Hitesh Windlass, Manoj Kumar Windlass, and AKW WBL Family Private Trust
The company’s IPO was on 16th august and had raised Rs 402 crore. The company proposed to utilize the fund to procure the equipment required for capacity expansion. However, the shares have been seeing a declining trend ever since listing.
This news may be concerning for the investors of Windlass Biotech. Meanwhile, Prashanth Tape, VP Research at Mehta Equities believes that investors can hold their shares on a long-term basis.
“We are optimistic on Indian CDMOs business wherein Windlass is one of the top five formulations of CDMO in India. Windlass has built strong long-term relationships with Indian pharmaceutical companies as well as multinational companies that engage in outsourcing for discovery and development. Windlass has the financial stability and operational ability, services, and products in line with the needs of their customers through the entire process. Hence investors may consider it with a long-term perspective only,” Tape said.
While the initial performance may be disappointing, it must be noted that the company owns globally approved manufacturing and R&D facilities. In addition, it manufactures over 3279 products and has filed for 11 patent applications. In short, the future seems optimistic and can potentially be an attractive long-term share in the future.