Synopsis:
Asston Pharmaceuticals Ltd saw a 2.65 percent decline in stock price despite a new order worth Rs. 6.52 crore order to supply pharmaceuticals products.
The shares of a micro-cap pharmaceutical company have come into the spotlight following the announcement of a new order for the manufacturing and supply of pharmaceutical products.
With the market capitalization of Rs. 93.6 crores, the shares of Asston Pharmaceuticals Ltd were trading at Rs. 110, down by 2.65 percent from its previous day’s close price of Rs. 113 per equity share.
Work Order
Asston Pharmaceuticals Ltd has received an domestic order worth ₹6.52 crore (including GST) by a leading pharma player to supply pharmaceutical products. The contract duration is 60 days, with 20 percent payment made in advance and the balance on delivery.
About the Company & Others
Founded in 2019, Asston Pharmaceuticals Pvt. Ltd. produces and exports a variety of medical supplies to South Africa, Asia, and West Africa, including tablets, capsules, syrups, sachets, and injections.
To guarantee product quality, the business collaborates with NABL-accredited laboratories and WHO-GMP certified manufacturers. Additionally, it has a regulatory team for developing formulations and preparing dossiers. Asston mainly focuses on competitive pricing, high-quality products, and ethical business practices.
The company’s revenue for FY2024–2025 increased by 60.61 percent year over year from 15.59 crores to Rs. 25.04 crores. Net profit saw a sharp increase of 218.38 percent, from Rs. 1.36 crores to Rs. 4.33 crores.
At the moment, the company’s P/E ratio is 21.6x which is lower as compared to its industry P/E 34.7x, and its ROE and ROCE are 67.8 percent and 50.3 percent, respectively. The D/E ratio of the company stands at 1.07. This shows the company’s strong financial performance but high leverage.
Written by Akshay Sanghavi
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