Low PE Pharma Stock: Venus Remedies zooms on positive update
Venus Remedies declared profit growth of more than 200 per cent in the recent quarter with improved profit margins at 30.57 per cent.
Venus Remedies was one of the few stocks that locked itself in upper circuit on Thursday. The stock gained 4.99 per cent with no sellers in the counter owing to the positive news on the legal front. Venus Remedies won the legal battle against French firm for paracetamol patent. The stock saw frenzied buying in the counter once the news was broken in the media. The management stated that it has won a 10-year-long patent battle against French firm SCR Pharmatop with regards to production of the intravenous paracetamol solution in the country. Venus Remedies had initiated the legal battle to remove any patent hurdle in manufacturing of intravenous paracetamol solution in India. An intravenous paracetamol plays an important role in managing inflammation and fever.
Venus Remedies, a research driven pharma company is poised for growth due to several factors including new product launches and various cost cutting measures.R&D is one of the most significant enabler for Venus Remedies. Venus Medicine Research Centre (VMRC), a R&D wing of Venus Remedies is equipped with a robust drug development infrastructure to support scaling-up. Having filed two more patents in 2019-20, taking the Venus’s total number of patents awaiting approval to 50, VMRC is currently working on 19 products across four therapeutic domains. Looking forward, VMRC is primarily focussing on developing the renal guard technology that aims to lower the renal toxicity associated with last-line antibiotics.
Venus Remedies is also revamping its manufacturing operations to ensure higher production volumes by introducing advanced manufacturing technologies and automation. Various cost cutting measures by Venus Remedies include setting up a new nitrogen plant and introducing power-efficient lyophilisers.
Venus Remedies declared profit growth of more than 200 per cent in the recent quarter with improved profit margins at 30.57 per cent. The stock trading at Rs 328 per share is reflecting a PE multiple of just about 7. Venus Remedies in one year has gained more than 532 per cent. In one month the stock is up by 6.33 per cent. The stock has almost doubled on YTD basis.