Small-cap Pharma stock FDC Ltd’s share price zoomed 8.4% on Monday’s early trades to reach a fresh 52-week high of ₹ 323.00 apiece on the National Stock Exchange (NSE) after the company reported robust results for the quarter and the year ended on March 31, 2023. At 12:23 PM, its shares were trading at ₹ 313.95 apiece up 5.37%.
On a consolidated basis, the company reported a 194.07% increase in its consolidated net profit to ₹ 30.71 crores for the January to March quarter (Q4FY23), against ₹ 10.44 crores reported in the corresponding quarter last year (Q4FY22). Its revenue from operations increased by 27.49% to ₹ 434.80 in Q4FY23 against ₹ 341.05 crores reported in Q4FY22.
For the entire year (FY23), its net profit came in at ₹ 194.04 crores, indicating a decline of 10.34% against ₹ 216.40 crores reported in the previous financial year (FY22). However, its revenue from operations climbed 16.74% to 1783.75 crores in FY23, against ₹ 1527.92 crores reported in FY22.
FDC Ltd manufactures and sells Oral Rehydration Salts (ORS), anti-infectives and ophthalmic. In addition, it has also set up globally approved, multi-location manufacturing facilities for Active Pharmaceuticals Ingredients (APIs) as well as Finished Dosage Forms.
The company strives to explore, innovate and integrate solutions with modern technology, empowering talent and expanding healthcare horizons for a better quality of life for millions globally.
The company’s management said that its domestic business displayed consistent growth, which can be attributed to the increasing demand for established therapies and brands. They added that FDC’s export formulation and API business also witnessed significant growth both quarter-on-quarter (QoQ) and year-on-year (YoY).
“As per secondary sales data by IQVIA for the quarter that ended Mar 31, 2023, the Company delivered strong YoY growth of 30.5% compared to the Indian Pharmaceutical Market (IPM) growth of 14.9% YoY. This growth was mainly driven by top brands such as Electral, Enerzal, Zocon and Simly MCT Oil which witnessed good growth. Electral has moved up to 12″ in IPM in MAT Mar’23 as compared to 18″ in the same period last year,” the company said.
FDC is a small-cap company with a market capitalization of ₹ 4934 crores. It has a low return on equity of 9.85% and an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio (P/E) of 25.62, which is almost at par with the industry average of 25.48.
The company’s promoters hold a 69.50% stake in it followed by retail investors with 18.56%, mutual funds with 8.03%, foreign institutions with 3.80% and other domestic institutions with a 0.11% stake.
Written By Simran Bafna
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