Penny Stock Under Rs 15 Locked in the 5 Per Cent Upper Circuit Secures Rs 517 Crore Global Sourcing Mandate with Thai Client
Over the past year, the company has seen significant returns, with a 1-year return of 125 per cent and a 5-year return of 2018.52 per cent.
Welcure Drugs & Pharmaceuticals Limited announced that it has secured a significant global sourcing mandate valued at approximately Rs 517 crore. This mandate is with an overseas client, Fortune Sagar Impex Company Limited, based in Thailand.
The mandate involves fee-based sourcing and procurement services for multiple finished-dosage SKUs, operating on an Ex-Works model. Welcure's revenue stream from this mandate is a fixed 5 per cent commission on the cost of goods, with an estimated service income of approximately Rs 25.85 crore. This income is projected to be recognised over the fiscal year 2025-26. The execution of this mandate will be on a call-off basis, with the initial lot targeted for immediate mobilisation upon the fulfilment of customary prefunding milestones. The remaining tranches are expected to be concluded by September 30, 2026.
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As of June 18, 2025, the latest share price of Welcure Drugs & Pharmaceuticals Ltd. on BSE is Rs 13.7, locked in the 5 per cent upper circuit. The stock opened at Rs 12.00. Over the past year, the company has seen significant returns, with a 1-year return of 125 per cent and a 5-year return of 2018.52 per cent. In terms of financials, for Q4 FY25 (March 2025), Welcure Drugs & Pharmaceuticals reported a revenue of Rs 21.21 crore and a net profit of Rs 2.54 crore, indicating a substantial jump from the previous year. The net profit margin for this quarter was 11.98 per cent.
Welcure Drugs & Pharmaceuticals Ltd. is primarily engaged in the wholesale of pharmaceutical and medical goods. The company's business model, as highlighted by the recent mandate, involves fee-based sourcing and procurement services, which allows it to generate revenue without taking on additional balance-sheet exposure. This approach emphasises their role in facilitating the supply chain for finished-dosage SKUs, as seen with their new overseas client. The company holds ISO 9002 certification.
Disclaimer: The article is for informational purposes only and not investment advice.