Small-cap pharma stock reached a 52-week high after reporting an increase in net profit of 554 percent quarterly. The share price has generated returns of more than 114 percent in a year.
Price Movement
In Tuesday’s trading session, the share price of Strides Pharma Science Ltd. surged to a 52-week high of Rs.1,120.3 per share, marking a significant increase from its previous closing price of Rs.1,033.75 per share. The stock recorded a gain of over 8 percent during the session.
Reason for the rise
The significant rise in Strides Pharma’s stock price can be attributed to the notable increase in revenue and net profit as detailed in the company’s financial statements.
In Q1 FY25, the company achieved total revenue of Rs.1,087.5 crore, marking a 17 percent growth compared to Rs.929.9 crore in Q1 FY24. Additionally, on a quarter-over-quarter basis, there was a slight increase of 0.3 percent in total revenue, rising from Rs.1,084 crore in the previous quarter.
Strides Pharma Science Ltd. reported a remarkable 554 percent quarter-on-quarter growth in its net consolidated profit, reaching Rs.68.3 crore in Q1 FY25, compared to Rs.10.3 crore in the previous quarter ending March 2024.
On a year-on-year basis, the company turned around from a loss of Rs.95 crore to a profit of Rs.68.3 crore in Q1 FY25.
Furthermore, the company reported an EBITDA of Rs.217 crore for Q1 FY25, marking a 29 percent increase from Rs.168 crore in the corresponding quarter of the previous fiscal year. Additionally, the company’s net debt decreased by Rs.36.7 crore in Q1 FY25.
Segment Revenue
Strides Pharma Science Ltd. operates in two distinct business segments: the Pharmaceutical segment and the Bio-pharmaceutical segment. For the quarter ending June 2024, the company generated its entire revenue from the Pharmaceutical segment.
The company primarily operates in three key markets; it derives 53 percent of its revenue from the US market, 31 percent from other regulated markets, and the remaining 16 percent from growth and access markets.
Geographical Presence
Strides Pharma Science Ltd.’s business vertical spans operations in the United States, Europe, and Australia, as well as emerging markets, primarily in Africa, and donor-funded institutional companies.
Furthermore, the company has extended its presence into new regions such as Asia-Pacific, the Middle East, North Africa, and Latin America. It holds a strategic supplier role in Australia with the largest generic company, Arrotex, under a preferred supply agreement. Currently, Strides Pharma Science operates 7 manufacturing facilities.
About the company
Strides Pharma Science Ltd. is in the development and manufacturing of pharmaceutical products business. The company is focused on the development and manufacture of IP(intellectual property) led niche and pharmaceutical products. The company operates through two segments: Pharmaceutical and Bio-pharmaceutical. Strides Pharma Science is headquartered in Bengaluru, India.
Written by – Siddesh S Raskar
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