This pharmaceutical stock has hit over 25-year high; up 1,874% in 21 months

Kopran was up 5% at Rs 318.95, hitting its highest level since 1994

Shares of Kopran were locked at the 5 per cent upper circuit for a second straight day, at Rs 318.95 on the BSE in Friday’s trade, in an otherwise weak market.

The stock of the pharmaceutical company was trading at its highest level since 1994. It had hit a record high of Rs 559 on December 5, 1994, data shows. In the past 21 months, the market price of Kopran has zoomed 1,874 per cent from a level of Rs 20.50 hit on March 17, 2020.

The counter has seen huge activities, with trading volumes jumping nearly four-fold today. A combined 1.08 million equity shares, representing 2.5 per cent of total equity of Kopran, have changed hands on the NSE and BSE till 02:12 pm. Further, there are pending buy orders for around 54,000 shares, the exchanges data shows.

In the past one month, the stock has outperformed the market by surging 32 per cent after the company announced fund raising plan via preferential issue. In comparison, the S&P BSE Sensex was down 4.4 per cent during the period.

Kopran has called the Extra Ordinary General Meeting (EGM) on January 3, 2022 to take approval for the proposed preferential issue. The board of directors at their meeting held on December 8, 2021, had approved allotment of 4.96 million equity shares at a price of Rs 255 on preferential basis to promoter, promoter group and others.

Kopran is an integrated pharmaceutical company, committed to supply International Quality Formulations and Active Pharmaceutical Ingredients (APIs) globally. APIs vertical is being operated under Kopran Research Laboratories (KRLL), a wholly-owned subsidiary of Kopran.

Last week, the Indian Patent office had granted process patent for 20 years to KRLL for the API product NITROXOLINE, for the invention titled "Improved, cost effective process for producing Nitroxoline".

"Kopran has committed capex of Rs 80 crore under production-linked incentive (PLI) scheme. The company has completed upgradation and expansion of Mahad facility, undertake during the last fiscal. The company also completed upgradation and expansion of solvent recovery plant. The expansion of non-sterile plant undertaken by the Company will be completed by end of January 2022. The development of Panoli site has commenced and is expected to be completed by end of April 2022," the company said in an investor presentation.

The Company emphasises on increasing its participation throughout the regulated market in the US, Europe, and China. It has filed 7 DMFs in the US, and plans on launching more DMF products there. In terms of product development, Kopran is developing a comprehensive range of blockbuster products under Carbapenem, Antithrombosis, and Anti-diabetic class, which will help it strengthen its position in the API segment, Kopran said in its FY21 annual report.