On Thursday, the share price of the microcap company rose 8.5 percent to its intraday high of Rs 408.70 from its previous close of Rs 376.4 after the company announced the dual achievements in securing marketing authorizations for three variants of Docetaxel and Cytarabine.
According to the filing of Venus Remedies Ltd, the company has secured a marketing authorization for a variant of Docetaxel (160MG/8ML, 80MG/4ML, 20MG/1ML) in Israel and Cytarabine 100MG in Colombia.
Docetaxel and cytarabine are both chemotherapy drugs used to treat cancer. Docetaxel inhibits cell division, whereas cytarabine inhibits DNA replication. Both are used to treat various cancers, sometimes concurrently, with increased efficacy but also with side effects.
Looking at the financials of Venus Remedies Ltd, net revenue increased by 19.8 percent year on year, from Rs 139.89 crore in Q2FY23 to Rs 167.72 crore in Q2FY24. Their revenue rose 76 percent sequentially from Rs 95.15 crore in Q1FY24 to the current levels.
Furthermore, the company’s net loss increased by 86 percent year on year, from a net loss of Rs 5.33 crores in Q2FY23 to a net loss of Rs 9.94 crores in Q2FY24. Their profit decreased by 742 percent sequentially from Rs 1.18 crore in Q1FY24 to current levels.
In comparison to its peer company, which has a low debt-to-equity ratio of 0.09 and is virtually debt-free, the price-to-earnings ratio is 19. However, during the last two years, the net profit margin, return on equity, and return on capital employed have all decreased.
The share price of the company has risen 58 percent in the last six months and 124 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs a year ago the current value would be 2.24 lakhs.
Venus Remedies Ltd is a micro-cap stock with a market capitalization of Rs 534 crores, the promoter owns 41 percent of the company, 57 percent of the company, and 2 percent of the company is owned by foreign institutional investors.
Venus Remedies Ltd is a pharmaceutical company based in India that operates in both domestic and international markets. Its primary business is the manufacturing of pharmaceutical products.
Written by Sriram KV
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