This smallcap pharma stock has zoomed over 100% in a month

The stock of the smallcap pharmaceuticals company was trading at its 52-week high level on the BSE

Shares of Ambalal Sarabhai Enterprises were locked in the upper circuit of 20 per cent for the second straight day, in an otherwise weak market, at Rs 40.05 on the BSE in Friday's session. Till 12 pm, around 2,89,000 equity shares had changed hands on the counter on the BSE. There were pending buy orders for 3.57 million equity shares, representing 4.6 per cent of the total equity of the company, the exchange data shows.

The stock of the smallcap pharmaceuticals company was trading at its 52-week high level. In the past two trading days, it has rallied 44 per cent after the company said its subsidiary Synbiotics has ramped up the manufacturing capacity to meet the requirement of its most effective anti-fungal antibiotic in the post-Covid crisis. In comparison, the S&P BSE Sensex was down 0.29 per cent at 48,551 points. In the past one month, the market price of Ambalal Sarabhai Enterprises has zoomed 111 per cent in comparison to a 0.10 per cent rise in the benchmark index. The stock is listed only on the BSE.

India is witnessing an outbreak of Mucormycosis - a very fast-spreading fungal infection especially as part post-COVID infection and recovery because of the low immune system in the patients. The most recommended treatment for this infection is Amphotericin B injection.

Synbiotics, a subsidiary of Ambalal Sarabhai Enterprises, is the only manufacturer of the Active Pharmaceutical Ingredient (API) Amphotericin B in India and looking at the current outbreak of the disease and expected requirement, Synbiotics has ramped up the manufacturing capacity to meet the requirement of the same, the company said in BSE filing on Tuesday, May 11, 2021.

Earlier, on May 3, the company had informed that CoSara Diagnostics Private Limited (“CoSara”), a joint venture of a subsidiary of Ambalal Sarabhai Enterprises Limited and Co-Diagnostics, Inc, Salt Lake City, Utah, USA has been featured in the recent press, highlighting its actions to provide much-needed Covid-19 diagnostics as a wave of infections has led to the world's worst outbreak since the pandemic began.

CoSara's partners and distributors have also assisted in setting up nearly a dozen Molecular labs from the ground up. It forms an integral part of our mission to bring high-quality, affordable molecular diagnostics solutions to the world, the company said.

Ambalal Sarabhai Enterprises produces a range of bulk drugs pharmaceutical preparations and electronic instruments. The company operates in two segments, namely pharmaceuticals and electronics. The pharmaceuticals segment is engaged in the manufacturing of drugs and formulations while the electronics segment is engaged in the production of electronic instruments and services.