Shares of this large-cap Pharma stock jumped 4 percent in Tuesday’s trading session after the company plans to carve out its a couple of manufacturing sites pertaining to its ‘API’ segment. In the last six months, the stocks of this company have gained nearly 75 percent.
With a market capitalization of Rs 52,000 crores, the stocks of Lupin (NS:) Limited, a pharma company, started their trading session on Tuesday at Rs 1,135 and currently trade at Rs 1,142.50.
The company’s scrip witnessed an intra-day high, also marked as the company’s 52-week high price, of Rs 1,174.25 indicating a gain of around 4 percent as compared to the previous close of Rs 1,127.90 apiece.
The bullish sentiments in the stock were observed after the company informed that it plans to enter into a Business Transfer Agreement with “Lupin Manufacturing Solutions Limited” (LMSL), a wholly owned subsidiary of Lupin, to carve out two manufacturing sites pertaining to the API, i.e., Active Pharmaceutical Ingredients segment at Visakhapatnam & Dabhasa.
The consideration expected to be received from the above-mentioned transaction is around 7,500-8,500 million rupees, and, is estimated to be executed by the end of December 2023.
During the recent quarters, the company’s financial performance has been decent with the operating revenues going up from Rs 4,430.08 crores during Q4FY22-23 to Rs 4,814.06 crores during Q1FY23-24, and, the after-tax profits too, in congruence, went up from Rs 242.39 crores to Rs 453.33 crores.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 47.07 percent stake, and the Foreign Institutional Investors (FIIs) hold a 13.93 percent stake in the company.
Lupin Limited is a generic drug manufacturing company that is engaged in the business of developing as well as delivering a wide range of formulations across the globe. The majority of the company’s revenue is been generated by sales in the United States which is then followed by sales in the Indian regions.
Written by Amit Madnani
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