The shares of this pharma stock, which sells animal health products, soared over 5 percent on Thursday’s trading session after the company declared its financial results. In this article, we will dive deep into the merger details.
With a market capitalization of Rs 4,871 crores, the shares of Sequent Scientific Ltd are currently trading at Rs 195 per share, down by 19.2 percent from its 52-week high of Rs 240.70. Over the past five years, the stock has delivered a return of 129 percent.
About the announcement
SeQuent Scientific has secured BSE and NSE approvals for its merger with Hyderabad-based Viyash Life Sciences and has filed the proposal with the NCLT. The merger combines SeQuent’s global animal health business with Viyash’s robust API and R&D capabilities, expanding reach to 150+ countries and significantly enhancing USFDA-approved manufacturing and R&D capacity.
Currently, US-based PE firm Carlyle holds a majority stake of 53 percent in Viyash. The combined (Sequent and Viyash) entity reported strong Q4 FY25 results, with revenue of Rs 772.5 crore and an EBITDA margin of 15.8 percent. Under the terms, Viyash shareholders will receive 56 SeQuent shares for every 100 held.
Also read: Microcap stock jumps over 4% after reporting 1,437% YoY increase in net profits in Q4
Financial Highlights
The company reported a revenue growth of 13.21 percent to Rs 1,551 crores in FY25 from Rs 1,370 crores in FY24. Additionally, it reported a net profit of Rs 32 crores in FY25 as compared to a net loss of Rs 30 crores in FY24.
The stock has delivered an ROE and ROCE of 3.25 percent and 8.97 percent respectively, and is currently trading at a P/E of 220x as compared to its industry average of 30.29x.
About the company
Sequent Scientific Limited is a global veterinary healthcare company providing animal health APIs and formulations in the areas of anthelmintics, anti-protozoals, NSAIDs, anti-infectives, dermatology and nutraceuticals. The company also offers analytical and testing solutions for APIs, pharmaceuticals, personal care and nutraceutical industries.
Written by Satyajeet Mukherjee
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