This Pharma stock is engaged in pharmaceutical contract development and manufacturing organization and offers a range of pharmaceutical products and services is down 6 percent after the Income Tax Raid on the company and its subsidiaries.
Price Action
With a market capitalization of Rs. 9,334.25 Crores, the shares of Akums Drugs and Pharmaceuticals Limited down 6.5 percent touching a day’s low of Rs. 585 per equity share, from its previous day’s close price of Rs. 626.20. The stock was listed in August 2024 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’s stock was volatile after the company reports the Income Tax Department has conducted the search under the Income Tax Act of 1961 on the company and its subsidiaries. The company filing mentioned as they will clarify that are required.
Management Commentary
“At Akums, we uphold the highest standards of transparency, honesty, and fairness in all our operations. Our procedures and documentation strictly adhere to legal and regulatory requirements, ensuring complete compliance and fostering trust among stakeholders. While the matter remains under review, we have fully cooperated with the Department and are committed to supporting the process. We want to assure that our daily operations remain unaffected, and we continue to serve our partners, customers, and stakeholders with unwavering dedication. As a law-abiding organization, Akums continues to follow legal and corporate governance practices, reinforcing our commitment to integrity and excellence. We remain committed to driving our organization’s growth and creating value for all stakeholders while upholding the principles that define us.”
Future Plans
As per the recent transcript, they began commercial production at the new injectable facility in Haridwar, with plans to start vial and lyophilized production in Q3 and LVP FFS in Q4. They acquired land for Jammu plants, with production starting in 2026-27.
The company expects API prices to normalize by Q4, which is expected to positively impact revenue. H1 volumes were flat due to API price drops and stocking, and they anticipate FY26 to align with industry trends, with the potential for stronger growth driven by new launches and improved volumes.
Further, they said there is potential for exports especially in African and Asian countries, with product registration processes being expedited. Some countries have started purchasing small quantities for testing while signaling future business opportunities.
About the Company
Akums Drugs & Pharmaceuticals Limited was established in 2004. It is a leading Contract Development and Manufacturing Organization in India. They specialize in producing a wide range of pharmaceutical products, including tablets, capsules, and injectables.
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.
Written by Santhosh S
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