Shares of this smallcap company jumped around 4 percent in Wednesday’s trading session after receiving a Certificate of Suitability from European Directorate for the Quality of Medicines & Health Care (EDQM).
With a market capitalisation of Rs. 2,313 crores, the shares of IOL Chemicals & Pharmaceuticals Ltd started Wednesday’s trading session on a higher note at Rs. 396 compared to its previous close of Rs. 378.85. During the trading session, the shares hit a high of Rs. 402.75, gaining around 4 percent and are currently trading at Rs. 393 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the European Directorate for the Quality of Medicines & Health Care (EDQM) issued a Certificate of Suitability for Pantoprazole Sodium Sesquihydrate.
This certification will enable IOL Chemicals and Pharmaceuticals Ltd to export this product to European and other CEP-accepting countries. Pantoprazole is used for heartburn, acid reflux and gastro-oesophageal reflux disease (GORD).
Coming onto the company’s financial statements, the revenue decreased by 3 percent from Rs. 520 crores during the December quarter to Rs. 504 crores in the March quarter. On a contrasting note, the net profits increased by 22 percent from Rs. 23 crores to Rs. 28 crores during the same timeframe.
The company expects revenue growth from existing products to reach Rs. 3,000 crore by FY28 or FY29 and aims to expand export markets and increase capacity utilization.
The pharma company has a wide presence across various therapeutic categories like pain management, anti-convulsants, anti-diabetes, anti-cholesterol and anti-platelets.
As per the company’s filing, they hold the leading position in the global Ibuprofen market, boasting a 35 percent share. Their manufacturing capacity stands at 12,000 TPA, supported by a fully integrated production facility.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.34 percent and a return on capital employed (RoCE) of 11.74 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 6.30 percent.
Headquartered in Ludhiana, IOL Chemicals and Pharmaceuticals was incorporated in 1986. The company is a leading pharmaceutical (APIs) company and is a significant player in the speciality chemicals space. It serves the domestic and export markets.
Written By Vaibhav Patil
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