Harsh Goenka-backed RPG Life Sciences surges 15% on solid Q1FY25 results

Shares of small cap firm RPG Life Sciences surged up to 14.81 per cent, hitting its 52-week high at Rs 2057.15 per share on the BSE in Monday’s intraday deals. 

The pharmaceutical firm's revenue from operations grew 12 per cent year on year and 30 per cent Q-o-Q at Rs 165.42 crore for Q1 FY25 compared to Rs 147.78 in the same quarter last year. 

The company’s profit after tax also rose 21 per cent YoY to Rs 26.76 crore in Q1FY25 as against Rs 22.10 in Q1FY24. Sequentially the net profits grew by 102.11 points.

The company maintained an upward trajectory in earnings before interest, tax, depreciation and amortisation (EBITDA) margin, which improved from 23.0 per cent to 25.1 per cent Y-o-Y.

“Our structural approach of cost optimization has helped us explore newer avenues in our operations to achieve cost efficiencies, thereby helping us to maintain our uninterrupted Y-o-Y margin expansion trajectory,” said Yugal Sikri, Managing Director, RPG Life Sciences. 

He further said that the company is now shaping its international formulations and API businesses to emerge as second and third growth engines. For this to happen, the company is on course to modernise both its API and Formulations plants - by infusion of significant capex, our modernised R&D laboratories are also working to build a smart product pipeline. 

The CEO said that the international formulations business is now registering healthy double-digit growth and the API business is also showing promising growth.

The company has a total market capitalisation of Rs 3,199.89 crore, according to BSE. The company’s shares are trading at a price to earnings multiple of 33.80 times with an earning per share of Rs 53.

At 11:17 AM, shares of RPG Life Sciences were trading 8 per cent higher at Rs 1934.75 a piece. By comparison, the BSE Sensex was flat, down marginally by 0.06 per cent at 80,556 levels. 

The shares of the company have zoomed 23.75 per cent in the last six months, while rallying 93.26 per cent in the last one year.