From Rs 8 to Rs 29.22 per share: Pharma penny stock hit upper circuit; An investment of Rs 1,00,000 turns Rs 3,65,250 in just 1 year

The stock gave multibagger returns of 265.25 per cent from its 52-week low of Rs 7.71 per share.

On Monday, shares of Sudarshan Pharma Industries Ltd were locked in a 5 per cent upper circuit to Rs 29.22 per share from its previous closing of Rs 27.83 per share. The shares of the company saw a spurt in volume by more than 2 times on the BSE. The stock’s 52-week high is Rs 53.50 per share while its 52-week low is Rs 7.71 per share.

Sudarshan Pharma Industries Limited (SPIL) has approved a proposal to raise funds up to Rs 1500 crore (or equivalent in foreign currency) through various permissible modes, including public issue, preferential issue, QIP, or private placement of equity shares, global depository receipts, foreign currency convertible bonds, or other convertible securities. These offerings can be made in one or more tranches within domestic and/or international markets, subject to regulatory approvals. This strategic financial move aims to bolster the company's growth and expansion initiatives.

In parallel, SPIL is expanding its global footprint by establishing two wholly-owned subsidiaries. The Board has approved the incorporation of a subsidiary in Canada and another in the United States, proposed to be named "Sudarshan Industries LLC." Both subsidiaries will focus on the manufacturing and trading of chemical, pharmaceutical, general, and FMCG products. These international ventures are subject to necessary approvals from the Reserve Bank of India under the Foreign Exchange Management Act and its related regulations, enabling SPIL to establish a direct business presence in these key foreign markets.

About the Company

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 speciality 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 731 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years. The company is aiming to increase their profit margin when it resells 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.

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 Rs 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 265.25 per cent from its 52-week low of Rs 7.71 per share, an investment of Rs 1,00,000 turns Rs 3,65,250 in just 1 year.

Disclaimer: The article is for informational purposes only and not investment advice.