Shares of this pharmaceutical company slumped 7 percent in Friday’s trading session after Promoters sold the stocks through open market sales. In one month, the shares have delivered more than a 30 percent return to its investors.
With a market capitalisation of Rs. 21.4 crores, the shares of Evoq Remedies Ltd started Friday’s trading session on a lower note at Rs. 15.52 compared to its previous close of Rs. 16.90. The shares hit a low of Rs. 14.66, making a loss of 7 percent and are currently trading at Rs. 15.70 apiece.
Such a negative movement in the share price was observed after Promoters sold 72 lakh shares in the last two trading sessions, just after the company had won a mega export order.
On January 10, 2024, the company secured an export order of Rs 136 crores from Marlexx Pharma Inc. a US-based company, almost seven times its market capitalisation of Rs 22 crore to deliver high-quality pharmaceutical products.
Investors cheered the huge order win for the small company as the stock surged 20 percent. SME stocks are traded in lots, so any heightened demand results in a sharp surge.
As per the BSE bulk deal data, on January 10, Promoters Bhumishth Narendrabhai Patel and Payal Bhumishth Patel sold 11.5 lakh shares each. The penny stock extended gains for the second day on January 11. On the same day, both the Promoters Bhumishth Narendrabhai Patel sold 30.6 lakh shares and Payal Patel sold 18.5 lakh shares.
The cumulative selling stands at 72 lakh shares out of the total 1 crore shares held by the two as of September 2023 end.
Looking at the company’s financial statements, the revenue decreased by 15 percent from Rs. 4.60 crores in the June quarter to Rs. 3.90 crores during the September quarter. In addition, the net profits declined from Rs. 1.31 crores to Rs. 5 lakhs.
Coming onto the important financial ratios, the return on equity stood at 6.75 percent during FY22-23, and the return on capital employed was recorded at 6.96 percent during the same period. Furthermore, the net profit margin for the period FY22-23 was recorded at 7.94 percent.
Headquartered in Ahmedabad, Evoq Remedies was incorporated in 2010. The company is engaged in the trading of pharmaceutical formulations and allied products.
Written By Vaibhav Patil
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