Mutual Funds: Shares of Cohance Lifesciences were in bad condition during trading on Friday, the last trading day of the week. The selling of shares increased so much that it fell by 2.2 percent to Rs 615 per share. This is the lowest level since June 2024. The stock continues to fall for the 12th consecutive trading session. During this period, an overall decline of 28.40 percent has been recorded.
This downward trend started at the end of October, when the company’s managing director and director V. Prasad Raju resigned from his post. Due to this, the shares started falling even more after the weak performance of the company in the September quarter. However, despite this sharp fall, the stock has gained 40 percent in the last three years and 90 percent in the last five years. It jumped by 112 percent in just five months between May 2024 and October 2024.
Mutual funds lost more than Rs 1500 crore
Due to continuous decline in the stock market, domestic mutual funds also suffered huge losses. At the end of the September quarter, 30 mutual funds collectively held 16.49 per cent stake, which was almost double the 8.90 per cent stake they held in the June quarter. Fund houses have suffered a loss of approximately Rs 1545.7 crore due to 28.4 percent fall in share prices.
Some of the major funds that have stake in the company include DSP Multicap Fund, which holds 3.99% stake in Cohans; HDFC Large & Mid-Cap Fund, which has a stake of 2.64 per cent and Invesco India Contra Fund and SBI MNC Fund, which have a stake of 1.39 per cent and 1.32 per cent respectively.
Company’s second quarter results
In the quarter of financial year 2025-26, the company’s consolidated net profit declined by 52 percent to Rs 66.39 crore, whereas in the same period last year, the company had earned a profit of Rs 138 crore. During this period, the operational revenue of the company also decreased to Rs 555.57 crore this time compared to Rs 603.77 crore in the second quarter of last year. EBITDA fell by 41 percent to Rs 121 crore from Rs 205 crore in the September quarter of 2024. At the same time, EBITDA margin decreased by 1200 basis points to 22 percent.
The company says that the company’s performance was affected due to several challenges like pharma destocking, delay in biotech funding and temporary closure of Nacharam plant, which affected the growth during the quarter and led to weak results.
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