Extending the rally seen during the past seven trading sessions, shares of Hester Biosciences hit a 52-week high of Rs 1,925 apiece, up 3 per cent on the BSE, on Tuesday. This was on the back of the government's decision to clear an outlay of Rs 13,342 crore for animal husbandry industry.
The stock of India's second largest poultry vaccine manufacturer was trading close to its all-time high of Rs 1,950 per share touched on December 26, 2017 in intra-day trade.
As part of its first few cabinet decisions after being re-elected for a second consecutive term, the Modi government last week, announced an initiative to control Foot and Mouth Disease (FMD) and Brucella disease among animals.
"The end result achievable through this initiative is immunisation of animals against FMD and Brucella disease, improvement in the health of animals, primarily improving milk yields (due to better animal health) and less disease incidences," a statement released by the government said, adding, "Farmers in India will also be benefitted economically as well as in terms of their own health".
The decision opened avenue for companies like Hester to make the vaccine available across the country.
"The company has already geared-up to ensure that it is able to supply the required quantities in the coming years,” Rajiv Gandhi, CEO & Managing Director of the company said in a statement.
For the financial year 2019, Hester Biosciences had reported a strong 76 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 41 crore. While net sales grew 31 per cent at Rs 178 crore over the previous fiscal, Ebitda (earnings before interest tax depreciation and amortization) margin improved to 38 per cent from 35 per cent during the same period.