This Pharma stock is engaged in pharmaceutical contract development and manufacturing organization and offers a range of pharmaceutical products and services entered into an agreement with a leading South Korean company for Nutraceuticals.
Price Action
With a market capitalization of Rs. 9,144 Crores, the shares of Akums Drugs and Pharmaceuticals Limited hit a 5 percent upper circuit in the day’s trade at Rs. 580.95 per equity share, from its previous day’s close price of Rs. 553.30. The stock was recently listed on the bourses with a price of Rs. 725 apiece which was 6.77 percent higher from the issue price of Rs. 679 per share. From the day of listing the stock has underperformed the nifty index.
What Happened
Akums Drugs and Pharmaceuticals Limited has entered into a master sales agreement with Caregen company which is a South Korean based focused on the Nutraceuticals segment.
Akums have been granted exclusive rights to sell certain products of Caregen in India for the agreement term. Further Akums would also undertake marketing, packaging, and selling of Caregen’s bulk product under Caregen’s trademark or Akum’s trademark, or Akums client’s trademark.
Caregen is a biotechnology company based in South Korea leading in research and development and has commercialized using patents.
About the Company
Akums Drugs & Pharmaceuticals Limited, established in 2004, is a leading Contract Development and Manufacturing Organization in India. The company specializes in producing a wide range of pharmaceutical products, including tablets, capsules, and injectables.
Their business model focuses on innovation through extensive R&D, regulatory compliance, and high-quality manufacturing processes. Akums serves both domestic and international markets, focusing on customized solutions for clients while maintaining a commitment to safety and efficacy. With multiple manufacturing facilities and a strong track record, Akums aims to enhance patient care by delivering reliable and effective healthcare solutions across various therapeutic areas.
Financials & Ratios
Its Revenue from operations declined by 12.5 percent year on year from Rs. 1,181.25 Crores in Q2FY24 to Rs. 1,033.09 Crores in Q2FY25, accompanied by profits of Rs. 2.22 Crores to Rs. 4.37 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of -3.57 percent and a return on capital employed (ROCE) of 1.24 percent. It has reported a debt-to-equity ratio of 0.83.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a major share of 75.26 percent in Akums Drugs and Pharmaceuticals, Foreign Institutional Investors (FII) holding around 7.34 percent, Domestic Institutional investors (DII) standing at 7.52 percent, and public holdings standing at 9.88 percent.
Written by Santhosh S
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