Shares of this Pharma stock under the ‘micro-cap’ category spiked around 14% in Thursday’s trading session after the company posted financial results for Q2FY24, i.e., for the quarter ended September 2023.
With a market capitalization of Rs 965.38 crores, the stocks of Syncom Formulation (India) Limited started their trading session on Thursday at Rs 9.40 and currently trades at Rs 10.72, gaining approximately 14 percent as compared to the previous close of Rs 9.14 apiece.
Such sharp movements in the company’s stock prices were witnessed after they announced robust financial results for the quarter ended September 2023.
The company, on a sequential basis, reported an increase in the operating revenues as well as after-tax profits with the former increasing from Rs 60 crores during Q1FY23-24 to Rs 64 crores during Q2FY23-24, and, the latter, during the same period, moved up from Rs 4.40 crores to Rs 6.51 crores.
In addition, the company, yearly as well, reported a good financial performance as far as the abovementioned metrics are concerned. The operating revenues rose from Rs 55 crores during Q2FY22-23 to Rs 64 crores during Q2FY23-24, and, the after-tax profit figures, increased from Rs 3.60 crores to Rs 6.51 crores exhibiting a jump of around 80 percent.
Historically, the company, due to increased raw material and admin costs, has seen a dip in the profitability metrics with the return on equity (RoE) reducing from 11.83 percent during FY21-22 to 8.48 percent during FY22-23, and, the return on capital employed (RoCE) declining from 13.72 percent to 9.68 percent.
According to the shareholding data available for the September 2023 quarter, the company’s Promoters hold a 50.57 percent stake followed by the Public (retail) investors holding the remaining 49.43 percent stake in the company.
Syncom Formulation (India) Limited is a pharmaceutical company operating through three segments including manufacturing and dealing in pharma drugs & formulations, renting of property, and trading of commodities. The company’s product portfolio includes antiviral, antidepressants, and many more.
Written by Amit Madnani
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