This ten-bagger small-cap pharma stock just got locked in upper circuit
Pharma stocks are in vogue ever since the pandemic hit us last year. Several pharma companies have turned out to be multibaggers in the past couple of years or even in the past one year.
Venus Remedies (VR) is one such small-cap pharma company that stands out with its huge outperformance. The stock is trading at its lifetime highs and is close to becoming a ten-bagger. VR is buzzing on the bourses, owing to its improving financials and solid product pipeline that puts the company on a faster growth trajectory.
VR is one of the several pharma companies that stand to gain from the increased demand for certain raw materials (molecules) in order to fight COVID-19. According to WHO guidelines, the use of low molecular weight heparin (such as Enoxaparin) for pharmacological prophylaxis in hospitalised COVID-19 patients are recommended to prevent untoward coagulative events such as Venous thromboembolism (VTE), stroke, deep venous thrombosis, pulmonary embolism and acute coronary syndrome. Thus, Enoxaparin becomes an essential medicine by World Health Organisation (WHO) for the treatment of thrombosis worldwide.
VR is a leading manufacturer and supplier of Enoxaparin. With the rising COVID-19 cases, both in India and globally, the demand for such essential products is expected to rise manifold. Thus, VR may see continued demand for its stock even it has risen multiple times in the last one year.
On Thursday, the stock locked in at its upper circuit of Rs 336.96, up by Rs 16 per share or 4.99 per cent on Thursday. It was trading at Rs 38.40 per share, exactly a year ago.