Pharma stock that deals in the business of manufacturing generic API and its Intermediates, Xanthine derivatives, and offers CDMO or CMO services, was up 17 percent after reporting net profit growth of 40 percent year over year and dividend announcement.
Price Movement
Aarti Pharmalabs Limited‘s stock in Thursday’s session touched a day’s high of Rs. 747.15 per share up by 17.19 percent. The stock reiterated from the day’s high and was trading at Rs. 679.25 which is 6.54 percent higher than the previous closing price of Rs. 637.55. The stock has delivered a return of around 24 percent in the past year and has outperformed the Nifty Index in the same period.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 537.77 crore which increased by 19.85 percent year on year, from Rs. 448.69 crore in Q3FY24 and a 17.41 percent increase from Rs. 458.02 crore in Q2FY25.
Their net profit increased by 40.22 percent year on year, from Rs. 52.76 crores in Q3FY24 to Rs. 73.98 crores in Q3FY25. Quarterly, the profits increased by 35.45 percent from Rs. 54.62 crore.
Dividend Annoucements
The company’s board of directors has declared an interim dividend of Rs. 2.5 per equity share which is 50 percent on the face value of Rs. 5 per share for FY25. The record date for the same is on Friday, February 14, 2025.
Future Outlook
They expect EBITDA growth of approximately 10 to 12 percent in FY25. Further, they plan to lead the market in the Xanthine segment through brownfield expansion. The ongoing capex for the Atali project which plans to add 400+ KL reactor volume in Phase 1 holds scope for further expansions. They expect it to be commercialized in Q4FY25.
Company Overview
Aarti Pharmalabs was established in 1984 and was demerged from Aarti Industries in October 2022. It is a leading Indian manufacturer of APIs, intermediates, and nutraceuticals with a global presence while offering CDMO services.
Written by Santhosh S
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