Aarti Drugs shares jump 4%

| Leave a Comment | Stocks

Shares of Aarti Drugs jumped as much as 4% on September 13, partly recouping last two trading sessions’ 6% loss. The stock closed at Rs 599.70, up 2.94% from the previous close.

The rise in the stock price was not supported by any major news or announcement. However, some analysts attributed the move to the company’s strong financial performance in the recent quarters.

Aarti Drugs has been on a tear in the last six months, rising over 88%. The stock has also given 31% returns year-to-date.

The company’s board had approved a share buyback of Rs 59.85 crore in July, which had then sent the stock soaring. The buyback was concluded in August.

Aarti Drugs is engaged in the manufacturing of Active Pharmaceutical Ingredients, pharma intermediates, and specialty chemicals. The company reported a 53% on-year jump in net profit at Rs 40 crore for the April-June quarter. However, revenue grew by only 7% to Rs 592 crore.

Analysts said that the revenue and net profit numbers in Q1FY24 were below their estimates as exports were primarily low in formulations and speciality chemicals segment during the period.

Despite the weak revenue growth, Aarti Drugs’ stock continues to be in demand due to its strong financial performance and the share buyback. The stock is trading at a price-to-earnings ratio of 20.5, which is lower than the average P/E ratio of the sector.

Overall, the outlook for Aarti Drugs remains positive. The company is well-positioned to benefit from the growth in the pharmaceutical industry. The share buyback has also created a positive sentiment among investors.


Related News

  • 22 Sep

    NBCC shares trade higher on Rs 100 crore work order from SAIL

    NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.

  • 22 Sep

    Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences

    Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.

  • 22 Sep

    Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus

    Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.

  • 22 Sep

    Market Update for September 22, 2023

    IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure

  • 22 Sep

    Lux Industries Shares Down 3% After Income Tax Raid

    Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.

Leave a Reply

Your email address will not be published. Required fields are marked *