Shares of this small-cap Pharma stock jumps 15 percent today after it released results for the first quarter of FY23-24. Moreover, gets Board approval for the Buyback of equity shares. The company’s stock has gained over 30 percent in the past one-month period from Rs 450 to the current price level.
With a market capitalization of Rs 5,454 crores, the stocks of Aarti Drugs Limited started their trading session today at Rs 571 and currently trade at Rs 589, a gain of approximately 15 percent as compared to the previous closing levels of Rs 510.55 apiece. The Pharma company’s stock hit its new 52-week high at a price of Rs 607.90.
The surge in stock prices today were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for Q1FY23-24.
Comparing Q1FY22-23 with Q1FY23-24, there has been an increase in the operating revenues as well as after-tax profits with the former moving from Rs 622 crores to Rs 661 crores and, the latter, keeping the timeframe the same, increasing from Rs 35 crores to Rs 48 crores indicating an increase of 37 percent.
Moreover, the company’s Board also gave its approval for a Buyback of 6,65,000 equity shares at Rs 900 per equity share representing 0.72 percent of the paid-up share capital of the company. The Buyback price exhibits a 53 percent premium to the current price prevailing in the market.
As per the shareholding data available for the June 2023 quarter, the Promoters hold a 58.7 percent stake, and the Foreign Institutional Investors (FIIs) hold a 1.97 percent stake in the company.
Generating a majority of its revenue from domestic operations within India, Aarti Drugs Limited is engaged in the business of offering Active Pharmaceutical Ingredients (APIs) in a range of therapeutic categories, such as cardioprotectant, anti-inflammatory, and vitamins among others.
Written by Amit Madnani
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