Shares of one of the leading pharmaceutical companies in India surged 6 percent on BSE to hit a new 52-week high at Rs. 499.8 on Thursday, after reporting Q2 FY25 results, with a rise in the net profit of 115 percent QoQ and 53 percent YoY, along with the Board’s approval for a stock split.
With a market cap of Rs. 1,266.6 crores, at 02:02 p.m., the shares of Jagsonpal Pharmaceuticals Limited were trading in the green at Rs. 483.3, up by nearly 2.5 percent, as against its previous closing price of Rs. 471.35.
What’s the news:
The fluctuations in the share prices were observed after Jagsonpal Pharmaceuticals Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Wednesday post-market hours.
For Q2 FY25, Jagsonpal Pharma reported revenue from operations of Rs. 74.7 crores, reflecting a significant growth of around 22 percent QoQ from Rs. 61 crores in Q1 FY25, as well as a growth of about 29.2 percent YoY from Rs. 57.8 crores in Q2 FY24.
Likewise, the company’s net profit for Q2 FY25 increased to Rs. 11.4 crores, representing a growth of around 115 percent QoQ from Rs. 5.3 crores in Q1 FY25, and a year-on-year increase of nearly 53 percent from Rs. 7.5 crores in Q2 FY24.
Operating EBITDA for Q2 FY25 reached Rs. 18.4 crores, representing an increase of around 46 percent YoY from Rs. 12.6 cores in Q2 FY24, with an EBITDA Margin of 24.6 percent, up by 280 bps YoY from 21.8 percent, during the same period.
Additionally, the Board of Jagsonpal Pharma has approved a sub-division/ split of the existing equity shares of the company, such that each Equity Share with a face value of Rs. 5 each, be split into such number of Equity Shares with a face value of Rs. 2 each, pending approval from the company’s equity shareholders.
Future Outlook:
In FY25, Jagsonpal Pharma recorded revenue growth of more than 20 percent, with operating margins (pre-ESOP) of around 22 percent, and a cash balance restored to levels seen in March 2024.
Looking ahead, the company aims for revenue growth of 12-14 percent, an improvement in operating margins by 100-150 basis points, and plans to deploy cash for strategic inorganic initiatives.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 67.98 percent stake in the company, Foreign Institutional Investors (FII) hold a 2.3 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 29.63 percent and 0.11 percent stake in Jagsonpal Pharma, respectively.
As of September 2024 shareholding pattern data available with the BSE, the ace investor Mukul Mahavir Agrawal holds a 1.75 percent stake in the company.
Stock Performance:
The stock has delivered positive returns of nearly 21.2 percent in one year, as well as around 49 percent returns in the last six months. So far in 2024, the shares of Jagsonpal Pharmaceuticals have given positive returns of about 21 percent.
About the company:
Founded in 1978, Jagsonpal Pharmaceuticals Limited, among the top 10 companies in the gynaecology segment, is engaged in the business of manufacturing and trading of pharmaceutical products and active pharmaceutical ingredients (APIs), with a larger focus on catering to women-specific healthcare needs.
Written by Shivani Singh
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