The company’s shares have seen a strong upmove ever since the company reported its results in August. The company made gains of over 35% between August 4 and August 7, which is when the three-day losing streak started.
Shares had surged 20% on August 4, when the smallcap company reported strong results for the June quarter. Net profit of ₹56.4 crore, was higher than the ₹10.8 crore posted a year ago. The company’s topline increased by 34.1% year-on-year to ₹570.1 crore.
Furthermore, EBITDA more than tripled in value to ₹82.5 crore from ₹24.2 crore last year, while Operating margin expanded sharply to 14.5%, compared with 5.7% in the corresponding quarter last year.
The company’s active pharmaceutical ingredient (API) revenue experienced a growth of 31%, with API exports increasing by 42%, driven by an enhanced product mix and heightened demand from international clients.
In total, export revenue more than doubled, achieving a year-on-year increase of 111%.
The company has a market capitalisation of ₹4,402.81 crore. Promoters control 35.65% of the company’s stake, with FIIs controlling 1.46% and DIIs holding 1.29%
Shares have gained in six out of the last 10 trading sessions and are now just 4% away from its recent 52-week high of ₹83.5.
The stock is currently trading at a one-year forward price-to-earnings multiple of 46.6 times, compared to the sector average of 47.99 times.
