The shares of this microcap company hit a 20 percent upper circuit after the company posted strong Q2 FY24 results. In six months, the shares have delivered more than 40 percent returns to its shareholders.
With a market capitalization of Rs. 48.23 crores, the shares of Vineet Laboratories Ltd opened Monday’s trading session on a higher note at Rs. 59. The share hit a 20 percent upper circuit at Rs. 67.95 apiece.
Such a bullish movement was observed after the company announced its June-September results. The company’s revenue increased by 16 percent from Rs. 37.52 crores during the June quarter to Rs. 43.38 crores in the September quarter. In addition, the company recorded a net profit of Rs. 2.41 crores in Q2 FY24 against a net loss of Rs. 1.25 crores in the previous quarter.
Comparing these metrics on a YoY basis, the revenue improved by 9 percent from Rs. 39.50 crores during Q2 FY23 to Rs. 43.38 crores in Q2 FY24. Furthermore, the company shifted from a net loss of Rs. 4.70 crores to a net profit of Rs. 2.41 crores during the same period.
Looking at the important financial ratios, the return on equity (RoE) declined from 22.19 percent during FY21-22 to 3.74 percent in Q2 FY22-23, and the return on capital employed decreased from 23.14 percent to 8.69 percent during the same timeframe.
According to the latest shareholding pattern, the Public or the Retail Investors have a considerable stake of 61.34 percent in the company, and the remaining 38.66 percent are with the promoters.
Headquartered in Hyderabad, Vineeth Laboratories was established in the year 2016. The company The Company focuses on manufacturing, fabricating, and processing active pharmaceutical ingredients.
Written By Vaibhav Patil
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