Pharma company Shilpa Medicare had a bumpy August, with share prices falling to a five year low to Rs. 210 on August 29 from Rs. 360 earlier that month. The trigger was weak Q1 results for the company, with falls in revenue and net profit both YoY and QoQ. The company also got smacked with five FDA observations for its Raichur plant - including the observation that during a plant walkthrough, the plant experienced three power cuts within fifteen minutes. The backup generator was during this time, unable to restore power. 

The FDA had also noted insufficient cleaning of utensils, missing equpment, etc. Shilpa Medicare in its filing to the exchanges referred to these observations as procedural. 

The company's sharp price fluctuations recently received clarification requests from the BSE. Investors should exercise caution.