Pharma stock engaged in the business of manufacturing, developing, and marketing a wide range of API’s, branded and generic formulations, medical devices, and many more jumped 4 percent in the day’s trade after foreign portfolio investors Morgan Stanley, Bofa securities, and many others invest in the company.
Price Action
With a market capitalization of Rs. 3,072 Crores, the shares of Morepen Laboratories Limited were trading at Rs. 60.13 per equity share, up 2 percent from its previous day’s close price of Rs. 59.14.
What Happened
Morepen Laboratories Limited through the Qualified Institutional Placement has successfully raised Rs. 200 Crores with QIP being subscribed 1.68 times with bids of Rs. 335 Crores against the Rs. 200 Crores, underscoring its commitment to accelerating growth, enhancing institutional participation, increasing market presence, and improving its financial position on the way to fortifying its leadership in the field of Medical Devices and APIs.
Some of the Marquee Foreign Portfolio Investors who have subscribed to the QIP are Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley and Eminence
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About the Company
Morepen Laboratories Limited is engaged in the business of manufacturing, developing, and marketing a wide range of Active Pharmaceutical Ingredients (APIs), branded and generic formulations, medical devices, Home Health products, and many more. It manufactures the iconic brand Burnol.
As of March 2024, Morepen Laboratories Limited generates 55.7 percent of its sales revenue from API, 26.3 percent from Devices, 12.8 percent from formulations, and 5.2 percent from Over-the-counter.
Financials and Ratios
Its Revenue from operations grew by 16.33 percent from Rs. 364 Crores in Q4FY23 to Rs. 423 Crores in Q4FY24, accompanied by profits of Rs. 8 Crores to Rs. 29 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 12 percent, and a Return on capital employed (ROCE) of 16.8 percent. It has reported a debt-to-equity ratio of 0.03.
Written by: Bharath K.S
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