Seems like a case of oversupply hitting the company when the new capex has not yet started producing profits. So even though topline fell by 17% or so , the operating margin fell from 21.23% to 15.34% . I think the market had anticipated these developments before hand and the stock had fallen from 650 high to 400-450 levels . Unless the new API capex goes live to 1 asset turns of investment , which the management has guided for FY23-24 , it seems the stock will remain around this level, might go to 350-400 levels too, which would be a buying opportunity for me, as the API business in of itself should be worth more than 200 cr .Hopefully with pharma started to do well again from Q4 , the capsule business will recover from Q1 of this financial year .
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