SMS Pharma gallops as board mulls overseas joint venture

SMS Pharmaceuticals surged 13.17% to Rs 104 at 10:24 IST on BSE after the company scheduled a board meeting on 27 September 2017 to mull joint venture with Chemo S.A. (Switzerland).

The announcement was made after market hours yesterday, 20 September 2017.

Meanwhile, the S&P BSE Sensex was down 143.46 points or 0.44% at 32,257.05. The S&P BSE Small-Cap index was down 208.15 points or 1.23% at 16,662.69.

On the BSE, 3.41 lakh shares were traded on the counter so far as against the average daily volumes of 31,816 shares in the past one quarter. The stock had hit a high of Rs 108.40 and a low of Rs 94.50 so far during the day. The stock had hit a 52-week high of Rs 115 on 6 October 2016 and a 52-week low of Rs 66.60 on 11 August 2017.

The stock had outperformed the market over the past one month till 20 September 2017, rising 25.89% compared with 3.54% gain in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 16.11% as against Sensex's 3.55% rise. The scrip, however, underperformed the market in past one year, declining 12.64% as against Sensex's 13.66% upmove.

The small-cap company has equity capital of Rs 8.47 crore. Face value per share is Re 1.

SMS Pharmaceuticals said that the company's board of directors would meet on 27 September 2017, to consider the proposal for joint venture, for the purpose of contract research organization (CRO) & contract manufacturing organization (CMO), between the company and Chemo S.A (Switzerland).

SMS Pharmaceuticals' net profit jumped 117.2% to Rs 9.23 crore on 43.2% growth in net sales to Rs 132.62 crore in Q1 June 2017 over Q1 June 2016.

SMS Pharmaceuticals is a global player in active pharmaceutical ingredient (API) manufacturing.

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