Synopsis:
Zenith Drugs Ltd. gained 3% after winning a UPMSCL supply contract for 1.2 million units of various medications.
The shares of the Pharma Penny stock company, specializing in the manufacturing and trading of a wide range of pharmaceutical products, including generic and branded medicines, as well as over-the-counter (OTC) products, jumped upto 3 percent after being awarded a Supply Tender by UPMSCL for Pharmaceutical Products.
With a market capitalization of 102.89 Crores on Monday, the shares of Zenith Drugs Ltd jumped upto 3.2 percent, reaching a high of Rs. 63.60 compared to its opening price of Rs. 61.05.
What Happened
Zenith Drugs Ltd, engaged in the manufacturing and trading of a wide range of pharmaceutical products, including generic and branded medicines, as well as over-the-counter (OTC) products, has been awarded a supply tender by Uttar Pradesh Medical Supplies Corporation Limited (UPMSCL).
The order is for Clobetasol Propionate Cream 0.05% w/w (15 gm, 1,20,000 units), Indomethacin Capsules 25 mg (1×10 per strip, 59,34,720 units), and Tramadol Hydrochloride Capsules 50 mg (1×10 per strip, 90,31,760 units). Supplies will be made as per the rate contract and purchase orders issued by UPMSCL, and the execution of this contract is expected to positively contribute to the Company’s revenue.
Financials & Others
The company’s revenue rose by 6.4 percent from Rs. 62 crore in March 2024 to Rs. 66 crore in March 2025. Meanwhile, Net profit declined from Rs. 4 crores to Rs. 1 crores during the same period.
The stock’s Price-to-Earnings (P/E) ratio of 14.4 is significantly lower than the industry average P/E of 32.8, indicating that the stock might be undervalued relative to its peers in the industry.
Additionally, the company’s debt-to-equity ratio of 0.70 suggests it has a moderate level of debt compared to its equity, which is important for assessing financial stability alongside its valuation.
Zenith Drugs Ltd. is a pharmaceutical manufacturing and trading company based in Indore, India, founded in 2000. It produces and markets a wide range of affordable medicines, including ORS powder, liquid orals, ointments, creams, gels, and capsules. The company operates a WHO-GMP-compliant manufacturing facility, has achieved ISO 9001:2015 certification.
It is one of the largest manufacturers of ORS sachets in Central India, supplying trusted pharmaceutical partners like Ajanta Pharma, Micro Labs, May & Baker, and Kopran. The company serves 18 Indian states, highlighting its wide reach and ability to meet the demand for high-quality, reliable hydration solutions, especially in regions where access to healthcare may be limited.
Written by Sridhar J
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