SeQuent Scientific, despite the markets being under pressure, stock saw a strong rally and jumped 13 percent today trading at Rs 83.85 in comparison to the previous closing price of Rs 74.10. In a span of just 2 days, the stock has seen a movement of around 35 percent from Rs 70 to current stock levels.
The reason behind this sharp upside in the company comes after their decision to terminate a 100% stake in Tineta Pharma.
On Wednesday, in its regulatory filing, Sequent Scientific said, “the Company will not acquire Tineta, and the Share Purchase Agreement entered by the Company with Tineta and its Promoters on November 07, 2022 stands terminated”.
SeQuent Scientific Limited is an India-based integrated pharmaceutical company operating in the domains of animal health. The company provides complete analytical solutions, including method validation, stability, and microbiology for APIs and finished products in a variety of dosage forms as per pharmacopeial monographs, customer-developed methods, or in-house method development.
Digging into the financials of the company, we can observe that the revenues have moved up from Rs 337.6 crores in Q2 v/s Rs 375.3 crores in Q3. Apart from this metric, the net profit for the company has shown a contrasting effect with becoming more negative from net losses of Rs 4.44 crores in Q2 v/s losses of Rs 9.78 crores in Q3.
The profitability ratios have shown a downward trend, with returns to the equity holders being 15 percent in FY20-21 to 6.6 percent in FY 21-22. Returns on the capital employed shifted from 16.24 percent during FY20-21 to 7.06 percent in FY 21-22.
Promoter’s stakeholdings have remained constant at 52.79 percent in the past 2 quarters whereas the FII’s have reduced their stake from 6.57 percent in Q2 v/s 6.25 percent in Q3.
Written by Amit Madnani
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