Shares of this microcap company locked 20 percent upper circuit in Wednesday’s trading session after receiving an order worth Rs. 17.13 crores from Rajasthan Medical Services Corporation Limited.
Price Movement:
With a market capitalization of Rs. 159 crores, the shares of Sotac Pharmaceuticals Ltd started Wednesday’s trading session on a higher note at Rs. 140.95 compared to its previous close of Rs. 120. Within a few minutes of the opening bell, the shares clocked 20 percent upper circuit at Rs. 144 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a Letter of Acceptance of approx. over Rs. 17.13 crores (including GST) from Rajasthan Medical Services Corporation Limited for the supply of various pharmaceutical products.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 35 percent from Rs. 77 crores during FY22-23 to Rs. 104 crores in FY23-24. In addition, the net profits magnified by 100 percent from Rs. 2 crores to Rs. 4 crores during the same period.
Key clients:
Some of the key customers of Sotac Pharmaceuticals are Cadila Pharma, J.B. Chemical, Lincoln Pharma, Intas Pharma, Viatris (Mylan), Makers (Ipca), Corona Remedies, Eris Lifesciences and many more.
The company manufactures Non-Beta-Lactam (general) tablets, Non-Beta-Lactam (general) capsules, oral liquid, dry syrup, and external preparations such as Ointment, Lotion, and cream and caters to 162 corporate clients on a loan license and/or contract manufacturing basis.
Important Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.45 percent and a return on capital employed (RoCE) of 9.58 percent for the period spanning FY23-24. Further, the net profit margin stood at 3.44 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters maintain a stake of 72.85 percent, while FIIs hold 8.99 percent of the shares. The remaining 18.16 percent stake is held by Retail Investors.
Company Profile:
Headquartered in Gujarat, Sotac Pharmaceuticals is in the business of manufacturing pharmaceutical products for different marketers on a loan license or contract manufacturing basis.
Written By Vaibhav Patil
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