Multibagger Pharma Stock Under Rs 50 To Be in Focus Today as Company Acquires 100 Per Cent Stake in Cibachem General Trading L.L.C
The stock gave multibagger returns of over 400 per cent from its 52-week low of Rs 5.82 per share.
Sudarshan Pharma Industries Limited's board has resolved on May 13, 2025, to acquire 300 shares of Cibachem General Trading L.L.C., a Dubai-based entity holding license number 696207. These 300 shares represent 100 per cent of Cibachem's paid-up share capital, each having a face value of AED 1,000. The consideration for this acquisition has been revised to Rs 55,00,000 or its equivalent in UAE Dirhams.
Cibachem, established on September 30, 2013, under commercial license number 696207, operates in the general trading industry, excluding insurance, banking, and third-party investment of funds. This acquisition will enable Sudarshan Pharma to enlarge its customer base in the Middle East Region. The acquisition of these 300 equity shares, previously held by Mr. Nilesh Harish Thakkar (225 shares or 75 per cent), Mrs. Hina Harish Thakkar (54 shares or 18 per cent) and Mr. Benjamin Harish Thakkar (21 shares or 7 per cent), is subject to the approval of the Reserve Bank of India. The indicative time period for the completion of this acquisition is September 30, 2025. Cibachem's turnover in the last 3 calendar years has been AED 4,99,250 in 2024, AED 3,51,050 in 2023, and AED 4,92,588 in 2022.
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 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.
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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 715 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.
The stock’s 52-week high is Rs 53.50 per share while its 52-week low is Rs 5.82 per share. 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 over 400 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.