Microcap Pharma stock under Rs 20 that is in the business of dealing in pharmaceutical formulations, APIs, surgical products, veterinary supplements, herbal & nutraceutical products surged up to 5.6 percent after the company announced its Acquisition agreement.
Share Price Movement
The shares of Vaishali Pharma Ltd, with a total market capitalization of Rs 168.08 Crores, reached an intraday high of Rs 15.81 per share gaining up to 5.6 percent on Wednesday’s trade. As of 10:00 am their shares were trading at Rs 15.68 which was 4.74 percent higher than the previous closing price of Rs 14.97.
The shares of Vaishali Pharma generated a three year return of 221 percent and a return of 194 percent in the past five years.
About the Agreement
As per a press release dated February 19, 2025, Vaishali Pharma has agreed to buy a majority stake of 51.02 percent in a company called Kesar Pharma Limited. Vaishali Pharma Ltd will subscribe to 35,89,201 equity shares with a face value of Rs 10 of Kesar Pharma Ltd.
The total investment amounts to Rs 20.42 Crores approximately. The investment will be made in multiple tranches through a combination of cash payments and the issuance of fresh shares by the Company.
The purpose of this acquisition is to expand its presence in product lines that cater to the evolving healthcare needs across different life stages and introduce a new category of pharmaceutical and healthcare products.
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Financials
The company’s YoY growth in revenue from operations in Q3FY25 is flat with Rs 27.91 Crores as against 27.89 Crores in Q3FY24. Their Net profits declined by 31.75 percent YoY from Rs 2.11 Crores in Q3FY24 to Rs 1.44 Crores in Q3FY25.
India Pharma Industry
The Indian Pharmaceutical industry is presently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. India has the highest number of pharmaceutical manufacturing facilities that comply with the USFDA and has 500 API producers that make for around 8% of the worldwide API market.
About Vaishali Pharma Ltd
Vaishali Pharma is a pharmaceutical company, dealing in pharmaceutical formulations, APIs, surgical products, veterinary supplements, herbal & nutraceutical products. The Company is operating both in domestic and export markets. In domestic markets, it is majorly into trading of APIs whereas in export markets, it is into trading and marketing of APIs, formulations, surgical products and others. The company has a global presence across Asia, Africa, America, Middle East, etc with over 1500 satisfied customers.
Written By Adhvaitha Nayani
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