Synopsis:
Phaarmasia Ltd surged to its 5 percent upper circuit after the Board approved the sale of its Hyderabad property for not less than Rs. 25 crores. The move aims to optimize the company’s asset portfolio and generate funds for business requirements.
A pharmaceutical stock hit its 5 percent upper circuit after the company approved the sale of its Hyderabad property for not less than Rs. 25 crores. The transaction is noteworthy as the consideration exceeds the firm’s current market capitalization, sparking investor optimism despite muted year-on-year financial performance.
Phaarmasia Ltd, with a market capitalization of Rs. 23.98 crore, opened the session at Rs. 35.13, which was also its intraday high, locking at the 5 percent upper circuit. The stock closed previously at Rs. 33.46.
What’s the News?
The Board of Directors, at its meeting held on 10 September 2025, approved the sale of land and buildings owned by the company at Plot Nos. 16A and 16B, Phase III, IDA Jeedimetla, Hyderabad, Telangana. The proposed sale, subject to shareholder and regulatory approvals, is intended to optimize the asset portfolio and raise funds for business operations.
The transaction is expected to be completed on or before 31 December 2025, unless mutually extended. Consideration from the sale will not be less than Rs. 25 crores in cash, subject to a market value certification from a registered valuer and payment of applicable duties and charges. The deal does not qualify as a related party transaction.
The proposed cash consideration of not less than Rs. 25 crores from the property sale is significant as it exceeds Phaarmasia Ltd’s current market capitalization of Rs. 23.98 crore. This highlights the relative scale of the transaction and underscores the potential impact on the company’s balance sheet and financial flexibility.
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Financial Snapshot
On a sequential basis, revenue rose 26.5 percent to Rs. 6.87 crore in Q1FY26 from Rs. 5.43 crore in Q4FY25. Operating profit turned positive at Rs. 0.09 crore compared to a loss of Rs. 0.61 crore. Profit before tax stood at Rs. 0.32 crore, up from a loss of Rs. 0.51 crore, while net profit was Rs. 0.27 crore against a loss of Rs. 0.53 crore.
On a yearly comparison, revenue declined 17.1 percent from Rs. 8.29 crore in Q1FY25 to Rs. 6.87 crore in Q1FY26. Operating profit fell 50 percent from Rs. 0.18 crore to Rs. 0.09 crore. Profit before tax, however, improved 28 percent from Rs. 0.25 crore to Rs. 0.32 crore. Net profit remained almost flat at Rs. 0.27 crore versus Rs. 0.28 crore.
About the Company
Phaarmasia Limited, a subsidiary of Maneesh Pharmaceutical Limited, specializes in the manufacture and marketing of oral contraceptives and iron tablets. The company emphasizes innovation, quality, and advanced healthcare solutions to cater to evolving customer needs. Its modern, contamination-free facility boasts an annual production capacity of over 30 million units, reflecting its large-scale operations.
Written By Manan Gangwar
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