Shares of this pharma stock under the ‘micro-cap’ category jumped up to 2 percent in Wednesday’s trading session after the company received its first incentive under the PLI scheme for the financial year of 2022-2023. In the past six months, the company’s stock gained nearly 40 percent for its stakeholders.
With a market capitalization of Rs 436.83 crores, the stocks of Venus Remedies Limited, one of India’s leading manufacturers of generic drugs, started their trading session on Wednesday at Rs 337.55 and currently trade at Rs 326.80. The company’s scrip witnessed an intra-day high of Rs 345.15 indicating a gain of around 2 percent compared to the previous close of Rs 338.30 apiece.
The company’s shares touched these high levels in today’s bearish market after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of its first incentive of Rs 7.50 crores for FY22-23 under the Production Linked Incentive (PLl) scheme of the Central Government.
The abovementioned disbursement covers approximately 75 percent of the total incentive due to the company for the year. In December 2021, Venus Remedies was one of the pharmaceutical companies that was selected under the PLI scheme
Belonging to ‘Category C’ of non-MSME pharmaceutical companies chosen under the PLl scheme, Venus Remedies has met the rigorous investment and sales criteria of the Government to qualify for the scheme.
The disbursement under the scheme will aid the company’s manufacturing capabilities and foster product diversification, including the manufacturing of complex generics, at par with the vision of “Atmanirbhar Bharat”.
The PLI scheme incentivizes eligible companies for incremental sales of pharmaceutical products, thereby encouraging investment in advanced manufacturing technology and infrastructure.
During the recent financial quarters, the company’s prime business parameters, such as operating revenues as well as after-tax profits, showed a dip in numbers with the former reducing from Rs 167.72 crores during Q2FY24 to Rs 143.42 crores during Q3FY24 and the latter, keeping the timeframe the same, took a downward shift from Rs 9.94 crores to Rs 6.85 crores.
Incorporated in 1989, Venus Remedies Limited is an India-based company engaged in the business of manufacturing and trading pharmaceutical products. The company produces biologically active food supplements including food supplements such as vitamins, extracts of medicinal herbs, amino acids, dietary fibers, and others.
Written by Amit Madnani
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