Shares of this mid-cap stock associated with the pharmaceutical sector jumped up to 11 percent in Monday’s trading session after the company announced financial results for Q4FY24, i.e., for the quarter ended March 2024.
With a market capitalization of Rs 20,975.34 crores, the stocks of Piramal Pharma Limited started their trading session on Monday at Rs 157.25 and currently trade at Rs 158.85. The company’s scrip witnessed an intra-day high price of Rs 166.60, exhibiting a gain of a whopping 11 percent compared to the previous closing levels of Rs 150.30 apiece.
Such a sudden spike in the company’s share price was witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced its financial results for Q4FY24, i.e., for the quarter ended March 2024.
On a sequential basis, the company reported an increase in its prime business indicators, viz, revenue from operations as well as after-tax profits with the former rising from Rs 1,959 crores during Q3FY24 to Rs 2,552 crores during Q4FY24, and the latter, keeping the timeframe the same, taking a drastic shift from Rs 10 crores to Rs 101 crores exhibiting a jump of approximately 910 percent.
In addition to the above, the company, yearly too, reported an increase in the abovementioned metrics with the operating revenues shifting up from Rs 2,164 crores during Q4FY23 to Rs 2,552 crores during Q4FY24, and the bottom-line numbers, during the same horizon, moving up from Rs 50 crores to Rs 101 crores.
Historically, the company, despite increased cost pressure annually, was able to witness positive movements in its profitability ratios in FY23-24. The return on equity (RoE) turned positive during FY24 at 0.22 percent, compared to (2.75) returns same period last financial year. Moreover, the return on capital employed (RoCE) increased from 1.65 percent during FY23 to 5.76 percent during FY24.
Keeping a purview of the last year, the company’s stock has proven to deliver multibagger returns of approximately 120 percent to its shareholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.20 lakhs.
Piramal Pharma Limited (PPL) is one of the Piramal group companies operating through three broad major segments, viz, contract development & manufacturing organizations (CDMO), consumer healthcare (OTC), and complex hospital generics (critical care).
Written by Amit Madnani
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