Synopsis:
Emcure Pharmaceuticals surged nearly five percent after acquiring the remaining 20.42 percent stake in Zuventus Healthcare, making it a wholly-owned subsidiary.
A pharmaceutical stock gained nearly five percent, following news of a strategic acquisition. Investors reacted positively as the company moved to consolidate its stake in a key subsidiary, reflecting confidence in the company’s expansion strategy and long-term growth potential.
Emcure Pharmaceuticals Ltd, has a market capitalization of Rs. 26,378.61 crore. The stock opened at Rs. 1,342.05, touched an intraday high of Rs. 1,414, and the previous close was Rs. 1,340.30, marking an intraday rise of 5.51 percent. Notably, Namita Thapar, holds a 2.68 percent stake in Emcure Pharmaceuticals.
What’s the News?
The Board of Directors has approved the acquisition of 4,095,180 equity shares, representing 20.42 percent of the total issued and paid-up capital of Zuventus Healthcare Limited (“Zuventus”), for a total consideration of Rs. 7,249 million. Following this transaction, the company has successfully purchased these shares from individual shareholders, thereby making Zuventus a wholly-owned subsidiary.
Zuventus, now a subsidiary of the company, is engaged in the manufacture and distribution of a wide range of pharmaceutical medicaments across various types, strengths, and applications in the healthcare sector. For the financial year ended March 31, 2025, Zuventus reported a turnover of Rs. 10,798.99 million and a PAT of Rs. 1,347.82 million.
Prior to this acquisition, the company held a 79.58 percent stake in Zuventus. After acquiring the additional shares, the company’s ownership in Zuventus has increased to 100 percent, making it a fully-owned subsidiary.
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Financial Snapshot
On a quarter-on-quarter basis, Emcure Pharmaceuticals’ sales marginally declined from Rs. 2,116 crore to Rs. 2,101 crore, a drop of 0.71 percent, while operating profit increased from Rs. 402 crore to Rs. 417 crore, up 3.73 percent. Profit before tax rose from Rs. 261 crore to Rs. 291 crore, reflecting an increase of 11.49 percent, and net profit climbed from Rs. 197 crore to Rs. 215 crore, up 9.14 percent.
On a year-on-year basis, sales grew from Rs. 1,815 crore to Rs. 2,101 crore, an increase of 15.76 percent. Operating profit jumped from Rs. 336 crore to Rs. 417 crore, marking a rise of 24.11 percent. Profit before tax expanded from Rs. 207 crore to Rs. 291 crore, up 40.58 percent, and net profit increased from Rs. 153 crore to Rs. 215 crore, representing a growth of 40.52 percent.
About the Company
Incorporated in 1981, Emcure Pharmaceuticals is engaged in the development, manufacturing, and global marketing of a wide range of pharmaceutical products spanning major therapeutic areas.
The company’s portfolio includes orals, injectables, and biotherapeutics, covering domains such as gynaecology, cardiology, blood-related disorders, oncology, respiratory, CNS, and HIV. Emcure has manufacturing facilities across India and a presence in over 70 countries worldwide.
Written By Manan Gangwar
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