Multibagger Pharma Stock Under Rs 30: Company Reports a 45 Per Cent Jump in PAT & FIIs Bought 1,29,48,000 Shares
The stock gave multibagger returns of 358 per cent from its 52-week low of Rs 5.82 per share.
Sudarshan Pharma Industries Limited (SPIL), established in 2008 and headquartered in Mumbai, is a prominent contract manufacturer of generic formulations. SPIL caters to a wide range of institutions and healthcare organisations operating across diverse segments, including specialty chemicals, intermediates, APIs, pharmaceutical and formulation generics, and bulk supply. Beyond its contract manufacturing services, SPIL has ventured into branded products through its Vimac Healthcare division. A significant portion of its product portfolio, consisting of 56 out of 96 items, is registered under the "R" trademark. Furthermore, SPIL collaborates with renowned Indian companies and institutional clients, offering contract manufacturing services for pharmaceutical formulations and medicines.
According to the half-yearly results, the net sales increased by 19 per cent to Rs 277 crore and net profit increased by 43 per cent to Rs 7 crore in H2FY25 compared to H2FY24. In its annual results, the net sales increased by 9 per cent to Rs 505 crore and net profit increased by 45 per cent to Rs 16 crore in FY25 compared to FY24. The company has a market cap of Rs 642 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years.
Sudarshan Pharma Industries Limited (SPIL) is focused on increasing its exports and the sales of the medicines it manufactures. They are also aiming to increase their profit margin when they resell Active Pharmaceutical Ingredients (API) within India. This strategy led to a notable increase in their EBITDA margin in the second half of the financial year 2025 (H2FY25), which resulted in a substantial growth in their Profit After Tax (PAT) for the same period.
Looking at the bigger picture, India's pharmaceutical market was worth around USD 42 billion in 2021 and is estimated to reach about USD 50 billion in 2024. Experts predict it will grow to roughly USD 66 billion by 2025 and could potentially reach between USD 120 billion and USD 130 billion by 2030. India supplies 40 per cent of the generic drug demand in the US and 25 per cent of all medicines in the UK. In terms of volume, India accounts for 20 per cent of the global medicine supply and provides about 60 per cent of the world's vaccine demand, making it the largest supplier of generic medications globally. The Indian biotechnology industry was valued at USD 64 billion in 2019 and is projected to reach USD 150 billion by 2025. India's medical devices market was valued at USD 12 billion in the financial year 2023–24, with exports of USD 3.8 billion, and is expected to grow at a Compound Annual Growth Rate (CAGR) of 20.1 per cent, reaching USD 50 billion by 2030. India's drug exports are significant, reaching USD 15 billion to over 200 countries. The Indian pharmaceutical sector contributes 6.6 per cent to the country's total merchandise exports, and India's drugs and pharmaceutical exports stood at USD 26.5 billion in FY24. India ranks as the 3rd largest in pharmaceutical production by volume and 14th by value and is the 12th largest exporter of medical goods globally. Foreign Direct Investment (FDI) inflows into the Indian drugs and pharma sector reached USD 236 million between April 2023 and June 2024.
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Sudarshan Pharma Industries Limited (SPIL) was founded in 2008 and has been in business for 16-17 years. They export their products to countries including the UK, Australia, Uzbekistan, Syria, Oman, Taiwan, and the MENA regions. Ratna Lifescience Pvt Ltd, a 100 per cent subsidiary of SPIL, has been focused on R&D and innovation since 2017. SPIL has acquired a 51 per cent stake in Ishwari Healthcare Pvt Ltd. In November 2024, SPIL and Ardes Laboratories Pvt. Ltd. entered into a Memorandum of Understanding (MoU). SPIL has also formalised a Rent Agreement with Daundi Biological Private Limited for five years, commencing on December 29th, 2024, to establish a new R&D center expected to be operational by March 2025. Out of their 96 products, 56 are registered under the “R” Trade Mark. They have launched a novel drug delivery system under the Love Bird “R” Brand with 5 products. Their new manufacturing facility, Unit 2 in Palghar, has a 1,000-litre capacity tank for oral liquid production, enabling an output of 2,000 litres per shift, scalable to 6,000 litres across two shifts. This facility has received approvals for 50 products for both domestic and international markets.
On November 22, 2024, the shares of the company ex-traded sub-division /stock split of the company’s 1 (one) equity share having a face value of R 10 each fully paid-up, into 10 equity shares of the company having a face value of Re 1 each fully paid-up. In March 2025, FIIs bought 1,29,48,000 shares and increased their stake to 18.45 per cent compared to September 2024. The stock gave multibagger returns of 358 per cent from its 52-week low of Rs 5.82 per share.
Disclaimer: The article is for informational purposes only and not investment advice.