Pharma stock hits 20% upper circuit after Co. to venture into real estate business
Pharma stock hits 20% upper circuit after Co. to venture into real estate business
A pharmaceutical stock has hit the 20 percent upper circuit limit following the announcement of its plans to enter the real estate business. This move has sparked investor interest as the company shifts focus to a new sector.
Share Price Variation
During Monday’s trading session, the share price of Par Drugs & Chemicals Ltd locked a 20 percent upper circuit of Rs.348.45 per share, from its previous close of Rs.290.40 apiece. Over the past six months, the stock has delivered over 60 percent returns.
What happened
Par Drugs and Chemicals Ltd is planning to diversify its operations by entering the real estate and construction sector, with the establishment of a new subsidiary for this purpose.
The company also intends to discuss the creation of another subsidiary focused on clean and renewable energy. This move reflects a shift towards sectors aligned with sustainability and current market trends.
The dual strategy aims to reduce reliance on the pharmaceutical business and address changing economic dynamics.
Financial Performance
In its latest financial report, the company recorded consolidated revenue of Rs.34.66 crores, reflecting a 33.87 percent increase from Rs.25.89 crores in Q2 FY24. Profit After Tax (PAT) rose 76 percent year-over-year to Rs.8.60 crores, up from Rs.4.89 crores in the same quarter last year.
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Domestic and International Presence
Par Drugs & Chemicals Ltd has a significant presence in both the domestic and international pharmaceutical markets. With two manufacturing facilities in Gujarat, domestic sales account for approximately 69 percent of its revenue.
The company exports to around 16 countries, including Germany, the UK, and the UAE, serving over 241 international customers. Its focus on market expansion and product development positions the company for sustained growth in the industry.
Manufacturing Facilities
Par Drugs operates four manufacturing blocks at its Bhavnagar facility, with a total production capacity of around 9,700 MTPA (Metric Tons Per Annum). These blocks are dedicated to producing various products, including APIs and fine chemicals.
The facility is equipped with modern machinery and an in-house testing laboratory to ensure adherence to quality standards required by customers.
Company Profile
Par Drugs and Chemicals Ltd. (PDCL), established in 1999 and based in Bhavnagar, Gujarat, specializes in the production of Active Pharmaceutical Ingredients (APIs) and fine chemicals, with a primary emphasis on antacid molecules.PDCL exports its products to various countries, while a significant portion of its sales comes from the domestic market.
Written by – Siddesh S Raskar
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