At 10:44 am, the stock was trading 3 per cent higher at Rs 412 on the BSE, as compared to 0.74 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined 2.23 million equity shares changing hands on the NSE and BSE, so far.
In the July-September quarter (Q2FY21), the company’s revenue from operations grew by 22.7 per cent year-on-year (YoY) mainly on an account of new launches and increase in market share of existing products across the three verticals.
Ebitda (earnings before interest, taxes, depreciation, and amortization) for the quarter grew 78.6 per cent YoY, with a +935 basis points (bps) margin expansion YoY on changing product mix and improved operational efficiencies arising out of higher capacity utilization.
The management expects sales to Europe and LATAM over FY20-23 to expand 800bps and 400bps respectively to 28 per cent and 12 per cent. It plans to launch newer products and enter newer markets within these regions.
Near-term growth is likely to be driven by the foray into MUPS (multi-unit pellet system) products, entry into newer markets and capacity addition in PFIs (pharmaceutical formulations intermediates) . Beyond which, its US pipeline and oncology products would drive growth, analyst at Anand Rathi Share and Stock Brokers said in result update. The brokerage firm has ‘buy’ rating on the stock with target price of Rs 455 per share.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? LOGIN NOW
Opt for auto renewal and save Rs 300
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.