Shares of this stock under the ‘micro-cap’ category rose up to 14.5 percent on Thursday after doubling its capacity in its existing business unit.
With a market capitalization of Rs 56.84 crores, the stocks of Auro Laboratories Limited started their trading session at Rs 84.79 and currently trade at Rs 91.20. Inching near its 52-week high, the company’s scrip witnessed an intra-day high of Rs 94.75 indicating a gain of around 14.5 percent as compared to the previous close of Rs 82.70.
Such sharp movements in the company’s stock prices were caused after it published a regulatory filing with the Bombay Stock Exchange (BSE) dated 23rd August 2023.
The filing mentioned the company’s Board of Directors approving the capacity expansion in an existing unit of the company. The existing capacity of the company stands at 1,800 Metric Tonnes per annum and it is proposed to have a capacity utilization of 3,600 Metric Tonnes per annum.
The investment required for the same is estimated to be Rs 40 crores and, the same would be financed from the company’s internal accruals & term loans from Bank.
The rationale behind such capacity expansion pertains to the near-future demand for the company’s products such as Metformin with an expected growth rate of over 10 percent worldwide for the ‘Type 2 Diabetes’ disease.
During the recent quarter, the company reported a dip in numbers with the operating revenues reducing from Rs 14 crores during Q4FY22-23 to Rs 10 crores during Q1FYY23-24, and, the after-tax profits, during the same period, moving down from Rs 1.8 crores to Rs 70 Lakhs.
As per the shareholding data available for the quarter ending June 2023, the company’s Promoters hold a 52.09 percent stake followed by the Retail Investors holding a 47.9 percent stake in the company.
Auro Laboratories Limited is a company based in India that is engaged in the business of manufacturing and selling pharmaceutical products such as Glibenclamide, Metformin Hydrochloride.
The product range offered by the company comprises muscle relaxants, anti-diabetic, anti-ulcer, etc. It sells its products within India and also exports them to international countries.
Written by Amit Madnani
Disclaimer
Shares of this stock under the ‘micro-cap’ category rose up to 14.5 percent on Thursday after doubling its capacity in its existing business unit.
