Shares of the second largest drug manufacturers in north India soared 20 percent after the company board approved the slump sale of the Active Pharmaceuticals Ingredients business.
On Wednesday, Ind-Swift Laboratories Ltd, a small-cap stock with a market capitalization of Rs 729 crore, touched a 20 percent upper circuit on the Exchange for Rs 123.40 per share.
According to the company’s exchange filing, The Ind-Swift Laboratories Board of Directors has approved the slump sale of Active Pharmaceutical Ingredients and the CRAMS Business to Synthimed Labs for a total enterprise value of Rs 1,650 crore. The transaction’s equity value is Rs 850 crore, with an approximate debt of Rs 800 crore, subject to other adjustments in accordance with the terms of the Business Transfer Agreement (BTA).
The company’s revenue from the API Business was Rs 1151.95 Crores for the fiscal year ended March 31, 2023, accounting for 96% of the Company’s consolidated revenue. API Business’s net worth was Rs 361.89 crores as of March 31, 2023.
The company’s shares have delivered multibagger returns of 108 percent over a year. A Rs 1 lakh investment in the company would be worth Rs. 2.08 lakh after a year.
For the most recent fiscal year’s report, the company margins grew modestly, resulting in a net profit margin of 3.96 percent and a return on capital employed of 17 percent.
The Company’s revenue climbed by 10 percent year on year, rising from Rs 280 crore in Q1FY23 to Rs 310 crore in Q1FY24. During the same time period, net profit fell by 10 percent from Rs 19 crore to Rs 17 crore.
According to the latest shareholding pattern, the promoters own 42 percent of the company, Domestic institutional investors hold 19.49 percent and retail investors hold 38.44 percent stake.
Ind-Swift Laboratories Ltd is the manufacturer and exporter of APIs and Advanced Intermediates. The Company caters to the API needs of Regulated and Soft Regulated Markets.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Multibagger Stock Hits 20% upper circuit after board approves the sale of its API business appeared first on Trade Brains.
