Bajaj Healthcare zooms 53% in four weeks on healthy FY24 guidance

EBITDA margins would be in the range of 16 -20 per cent for the FY24, mainly driven by growth in the formulation biz and with the introduction of reverse engineering APIs launched in the last fiscal.

Shares of Bajaj Healthcare hit 52-week high at Rs 471.45, on gaining 7 per cent on the BSE in Friday’s intra-day trade, extending its past 3-day 6 per cent rally on improved financial outlook. In past four weeks, the stock of pharmaceutical company has zoomed 53 per cent on healthy guidance for the financial year 2023-24 (FY24). The stock had hit a record high of Rs 496.30 on January 18, 2022.

Bajaj Healthcare has emerged as a prominent contender within the Indian Pharma industry, making its mark across pivotal segments including Active Pharmaceutical Ingredients (APIs), Finished Dosage Formulations (FDFs), and Intermediates. Supported by a network of nine cutting-edge manufacturing facilities, the company stands as a preeminent producer of Neutraceuticals, Ascorbic Acid IP, Sodium Ascorbate, Ferrous Ascorbate, and more.

The management expects the earnings before interest, taxes, depreciation, and amortization (EBITDA) margins to be in the range of 16 per cent-20 per cent for FY24, mainly driven by growth in the formulation business and with the introduction of reverse engineering APIs launched in the last financial year. The management plans to increase its exports growth of 15 per cent-20 per cent for FY24.

Last month, Bajaj Healthcare announced that the company has decided to divest its Tarapur units, as the units were no longer contributing to the company’s long-term goal of sustainability and profitablilty.

The proceeds from the sale of these units will be utilised for the repayment of debt raised for acquiring the said units which will help the company to reduce the interest burden, improve the liquidity and positively impact on the company’s operations in the current year, the company said.

Meanwhile, Bajaj Healthcare has successfully completed a USFDA inspection with zero 483 observations of its API manufacturing facilities at Vadodara, Gujarat.

Last week, the company announced the receipt of the Establishment Inspection Report (EIR) from the United State Food and Drug Administration (USFDA), for the pre-approval inspection at manufacturing site situated at Savli, Vadodara, Gujarat, with Zero 483 observations (No inspectional observations).

The receipt of the EIR also opens up the opportunities for filing companies own Drug Master Files with the USFDA as well as CDMO opportunities that company is eying with various customers across the globe, the company said in an exchange filing.