Shares of this pharmaceutical company jumped 3 percent in Tuesday’s trading session after receiving a Certificate of Suitability from the European Directorate for the Quality of Medicines and Health Care (EDQM). In one year, the shares have delivered more than 40 percent to its shareholders.
With a market capitalisation of Rs. 2,629 crores, the shares of IOL Chemicals and Pharmaceuticals Ltd started Tuesday’s trading session on a higher note at Rs. 439 compared to its previous close of Rs. 437.80.
During the trading session, the shares hit a high of Rs. 452, gaining around 3 percent and are currently trading at Rs. 447 apiece.
Such a positive movement in the share was observed after the company in an exchange filing announced that on 5th February 2024, the European Directorate for the Quality of Medicines and Health Care (EDQM) issued a Certificate of Suitability for Losartan Potassium.
This will enable the company to export Losartan Potassium to the European Market. Moreover, Losartan is a drug used for the treatment of hypertension.
Looking at the company’s financial statement, the revenue decreased marginally by 3 percent from Rs. 563 crores in the June quarter to Rs. 545 crores during the September quarter. In addition, the net profits declined by around 18 percent from Rs. 46 crores to Rs. 38 crores during the same timeframe.
The company has earmarked an annual capex of Rs 150 to 200 crores for the next few years, with specific investments in expanding the capacity of its Ibuprofen plant and ramping up the production capacity of ethyl acetate.
Additionally, the company has planned new manufacturing facilities and projects for manufacturing multiple pharma (APIs) products, with an aggregate capex of about Rs. 90 crores.
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. It is the largest player in Ibuprofen (pain killer) globally with a world market share of 35 percent.
Written By Vaibhav Patil
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