The shares of this leading pharmaceutical company plummeted by 15 percent on Monday, after a critical reactor blast took place in Telangana, killing ten workers. In this article, we will discuss more about this in detail.
With a market capitalisation of Rs 1,897 crores, the shares of Sigachi Industries Ltd are currently trading at Rs 49.6 per share, down by 29 percent from its 52-week high of Rs 69.75. In the last one year, the stock has delivered a negative return of 19 percent.
On Monday, the Sigachi Pharma plant in Pasamailaram Phase 1 in the Medak district of Telangana witnessed a reactor explosion. The incident resulted in the death of at least ten workers and left several others injured.
Emergency services acted quickly, dispatching eleven fire engines to manage the blaze and secure the area. The injured were taken to nearby hospitals, but there have been no updates about their injuries. The cause of the explosion is still being investigated, and it remains unclear the type of reactor or process caused the explosion.
Financial Highlights
The company reported a revenue of Rs 488 crores in FY25, up by 22.31 percent from its FY24 revenue of Rs 399 crores. Additionally, the company reported a net profit growth of 21 percent to Rs 70 crore in FY25 from Rs 57 crores in FY24.
The stock delivered an ROE and ROCE of 13.50 percent and 15.80 percent, respectively, and is currently trading at a P/E of 27.32x as compared to its industry average of 32.71x.
Sigachi Industries Limited is an Indian company that primarily manufactures microcrystalline cellulose (MCC), which is a key ingredient for making pharmaceutical tablets. The company also manufactures other cellulose-based excipients for a variety of industries, including pharmaceutical, food, cosmetics and chemicals. The company has manufacturing units in Hyderabad, Jhagadi, and Dahej, and exports products to over 50 countries across the globe.
Written by Satyajeet Mukherjee
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