Microcap pharmaceutical company jumped 4% on Thursday’s trading session after announcing strong quarterly results. The stock has given more than 40 percent returns in just 6 months to its investors.
With a market capitalization of Rs. 563 crores, the shares of Zim Laboratories Ltd opened today’s trading session on a positive note at Rs. 121 making a gain of around 4 percent and currently trading at Rs. 118.
Such a positive movement was observed in the stock after the company announced its Q2 FY24 results. The company’s revenue increased by 27 percent from Rs. 68.86 crores during the June quarter to Rs. 87.25 crores during the September quarter. In addition to this, the Profit After Tax (PAT) drastically increased by 1,731 percent from Rs. 22.66 lakhs to Rs. 4.12 crores keeping the timeframe the same.
Comparing these metrics YoY basis, the revenue declined from Rs. 99.4 crores during Q2 FY23 to Rs. 87.24 crores in Q2 FY 24. In addition to this net profit decreased from Rs. 5.66 crores to Rs. 4.12 crores during the same period.
Looking at the important financial ratios, return on equity accelerated from 8.65 percent during FY21-22 to 13 percent in FY 22-23. Furthermore, the return on capital employed ( RoCE) increased from 12.52 percent to 16.82 percent keeping the time horizon the same.
According to the latest shareholding pattern, Promoters have 33.26 percent of the stake and the remaining 66.74 percent is with the Public or Retail Investors.
Headquartered in Nagapur, Zim Laboratories Ltd was established in the year 1984. The company is a research-driven pharmaceutical company that develops, manufactures and supplies differentiated generic products in oral solid dosage forms, both as pre-formulation intermediates as well as finished formulations for certain key therapeutic segments.
Written By Vaibhav Patil
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