The shares of this pharmaceutical company hit a 20 percent upper circuit of Rs 678.40 a share after the brokerage recommended a ‘buy’ rating.
With a market capitalization of Rs 3,196.83 Crores. Orchid Pharma Ltd, On Friday, The shares were trading at Rs 630.30 a share, an increase of 11.49 percent from the previous closing price.
As per the brokerage recommendation, Investec gave Orchid Pharma Ltd. a target price of Rs. 800 representing a 20% increase from Friday’s price of Rs 663.70 apiece.
Here is the reason, Over the next three years, the company is expected to grow significantly. The turnaround plan is still being skillfully carried out by the new leadership. Over FY23–26, the base business (ex-PLI) saw a robust EBITDA CAGR of more than 35%.
The Business line states that the Board of Directors of Orchid Pharma Ltd. has authorized a draft scheme of amalgamation with Dhanuka Laboratories Ltd. (the promoter of Orchid Pharma) under SEBI regulations. The approval of the plan by the NCLT, creditors, shareholders, and other regulatory bodies is contingent.
Additionally, Orchid Pharma’s post-scheme shareholding will be 74.45 percent for the promoter and promoter group and 25.55 percent for the general public following the amalgamation of Dhanuka Laboratories Ltd (DLL) into Orchid Pharma by the scheme, as opposed to the pre-scheme-shareholding-of-69.84 percent and 30.16 percent, respectively.
As of September 30, 2023, M/s Dhanuka Laboratories Ltd. held 72.40 percent of the shares, according to a press release from the company. But DLL sold 13,00,000 equity shares on November 28, 2023, bringing their shareholding down to 69.84 percent.
Looking into the company’s performance revenue increased by 20 percent from Rs 165 Crore in Q2FY23 to Rs 199 Crore in Q2FY24. During the same period, net profit increased by 500 percent from a loss of Rs 5 crore to a profit of Rs 20 crore.
Orchid Pharma Ltd’s recent shareholding pattern, The Promoters of the company own 72.05 percent while Retail shareholders own a 7.05 percent stake in the company and Foreign Institutional Investors own an 8.08 percent stake.
Orchid Pharma develops and produces finished dosage forms as well as active pharmaceutical ingredients (APIs). Additionally, it researches novel medications.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
